IATA Reports May Traffic Results

· Most regions were relatively aligned in the severity of the freight declines. 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 fall.

· Capacity adjustments in freight markets have been catching up to demand declines. Freight load factors are 3.6 percentage points lower than a year ago. Freight yields fell by 17 percent in the first quarter, reducing revenues by 35 percent. Given the continuing downward pressure on yields, even the improvement in volumes in May will likely come without a corresponding improvement in revenues.

“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 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,” said Bisignani.