Middle East Is The Only True Growth Region In Either
The International Air Transport
Association (IATA) announced international scheduled traffic
results for July showing passenger demand declining 2.9% compared
to the same month in the previous year while freight demand was
down 11.3%. The international passenger load factors stood at
The July passenger demand fall of 2.9% was a relative
improvement over the 7.2% drop in June and the 6.8% decline
recorded over the first seven months of the year. July capacity was
more in line with reduced demand than in previous months and load
factors are similar to those recorded in July 2008. These positive
developments, however, have come at the expense of yields which
continue to fall sharply.
The 11.3% decline in cargo demand for July was also a relative
improvement over the -16.5% recorded in June and the -19.3% average
for the first seven months of the year. Despite this
improvement, the July freight load factor of 47.6% was lower than
the 49% recorded in July 2008.
“Demand may look better, but the bottom line has not
improved. We have seen little change to the unprecedented fall in
yields and revenues. The months ahead are marked by many
uncertainties, including the price of oil. The road to recovery
will be both slow and volatile. In the meantime, the industry
remains in intensive care,” said Giovanni Bisignani,
IATA’s Director General and CEO.
Middle Eastern carriers were the only region to grow in July.
The 13.2% growth in July was slightly better than the 12.9%
recorded in June. The growth is fueled by increased capacity and
greater market share in traffic between Europe and Asia. European
and North American carriers saw declines of 3.1% and 3.2%
respectively, in part because passengers have been trading down to
cheaper seats in the face of recession pressures. And Asia-Pacific
carriers are experiencing the extremes of this recession. The 7.6%
fall in passenger demand compared to July 2008, was the largest
decline of any region.
Freight demand on international markets was 11.3% lower in July
than a year earlier, but was a considerably better result than the
-16.5% recorded in June. All regions, except Africa, saw
improvement in demand compared to June. The Middle East was the
only region to grow. The stabilization of air freight demand
in the first quarter and its improvement in the second quarter has
helped reduce the rate at which excess capacity has been growing.
But load factors are still lower than levels seen at the same time
last year. Downward pressure on freight rates and revenues
continued to intensify in July.