Aviation industry in Asia Pacific region to recover by 2009 : IATA

According to a recent report by Centre for Asia Pacific Aviation (CAPA), the financial outlook of international aviation industry released this month by the International Air Transport Association (IATA), the traffic growth in the Asia Pacific region should recover by the next year. Overall, the airline industry is however, heading into a period of over-supply, and airline load factors (and yields) will fall as a result, putting further pressure on the industry bottom line.

Worldwide domestic or international traffic (passenger and cargo combined) is expected to grow just 2.9 per cent in 2009 (down from a previous forecast of 4.5 per cent) on the back of 2.2 per cent growth in capacity. This indicates that IATA expects that the world’s airlines will try to maintain load factors in the increasingly tough economic environment.