Relative Improvement For Cargo Says IATA
IATA says a 17.4 percent drop in international air cargo traffic for May 2009 is a relative improvement compared to 21.7 percent in April.
Since December 2008, demand for air freight has been averaging -20 percent. the airline association suggests the latest figure is a "first sign" of economic recovery in equity markets.
In May, freight volumes rose by around three percent above April levels as manufacturers began to add to their product inventories in anticipation of an economic recovery. However, IATA says inventories remain 10-15 percent higher than normal in relation to sales levels, indicating that a significant recovery is not expected in the near term.
Latin American carriers were the worst performers with a 21.0 percent fall, followed by Africa (-20.0 percent), Europe (-19.2 percent), North America (-18.8 percent), and Asia Pacific (-18.1 percent).
Middle East carriers were the exception with a 3.7 percent drop.
“We have lost several years of growth and yields are under severe pressure. Airlines are in survival mode. Cutting costs and conserving cash are the priorities,” said IATA Director-General and CEO Giovanni Bisignani.
“Even if we look beyond the crisis, it is difficult to see a return to business as usual. This crisis is re-shaping the industry. The burden cannot be placed on airlines alone. All partners in the value chain must be prepared to change—reducing costs and improving efficiencies. Too often we get the opposite. Already this year we have seen US$1.5 billion in cost increases from airports and air navigation service providers. It’s irresponsible in the best of times and a completely unacceptable abuse of monopoly position in a crisis,” he said.
