IATA announces international scheduled traffic results for May 2009

The International Air Transport Association (IATA) has announced international scheduled traffic results for May this year showing passenger demand declining 9.3 per cent compared to the same month in previous year while freight demand was down by 17.4 per cent. International passenger load factors stood at 71.2 per cent, down from 74.5 per cent recorded in May 2008. The 17.4 per cent decline in international cargo demand is a relative improvement compared to the 21.7 per cent drop in April. Since December 2008, cargo demand has been moving sideways in the -20 per cent range. This is one of the first physical signs of the economic recovery being anticipated in equity markets.

International passenger demand weakened from the -3.1 per cent recorded in April to -9.3 per cent in May.  But past two months have been slightly stronger than the 11.1 per cent decline reached in March, even after adjusting for the distortions caused by the timing of Easter. This indicates that a floor may now have been reached. However, the capacity adjustment of -5.0 per cent in May did not keep pace with the fall in demand during the same month. Moreover,