Air traffic decline continues: IATA

The International Air Transport Association (IATA) announced international air traffic for October 2008 showing a second consecutive month of global decline. International passenger traffic declined by 1.3 per cent compared to the same month in the previous year - a smaller decline than the 2.9 per cent drop experienced in September 2008. The October 2008 load factor was 75 per cent, approximately two per cent below previous year levels. International air freight traffic contracted by 7.9 per cent in October 2008 for a fifth consecutive month of increasingly severe drops.

“The gloom continues and the situation of the industry remains critical. While the drop in oil prices is welcome relief, recession is now the biggest threat to airline profitability. The slight slowing in the decline of passenger traffic is likely only temporary. The deepening slump in cargo markets is a clear indication that the worst is yet to come. As the global economic downturn re-shapes the world’s financial industry, policy makers must also understand that change is needed in air transport.