IATA Announces International Traffic Results in June

• June marked the 13th consecutive month of contracting demand for international air cargo. Despite reaching a bottom in December, improvement has been slowed by high inventory levels and soft demand. At the current pace, it will likely take several years before demand returns to early 2008 levels.

• Asia-Pacific airlines reported a 15.8 percent drop in June. While still extremely weak, this is an improvement compared to the 18.1% fall in May. This reflects improved economic conditions in a number of emerging Asian economies, such as China.

• The economic recovery in Europe and North America is being held back as consumers choose to repay debt rather than increase spending. European carriers saw the weakest demand for freight in June at -20.3 percent. This was a softening in demand from the -19.2 percent experienced in May. North American carriers reported a 18.6 percent fall in June demand. This is relatively unchanged from the 18.8 percent fall in May.

• Middle Eastern carriers reported a -4.2 percent decline in freight demand resulting in a 40.2 percent load factor.

• African carriers saw demand decline by 20.2 percent while Latin American carriers saw demand fall by 14.2 percent. Freight load factors in these regions were the lowest at 26.6 percent and 31.6 percent respectively.

“These are extremely challenging times for airlines. There are no signs of an early economic recovery. Other external risks are potentially great, including rising oil prices and the impact of Influenza A(H1N1) on demand. Cash flow is threatened by weak demand, exaggerated by fare discounting. And, after years of cost reduction, the scope for further cuts is limited. Flexibility is critical in finding new sources of capital and new markets. This crisis highlights the need for governments to replace outdated restrictions on ownership and market access with modern commercial freedoms. Quick action is needed,” said Bisignani.