International passenger traffic down 4.6% in December

International passenger traffic dropped 4.6 percent in November 2008 compared with the same period last year while that of cargo declined by an alarming 13.5 percent, the largest drop since the 9-11 bombing, according to the International Air Transport Association (IATA).

Asia-Pacific carriers, which account for 31.3 percent of international passenger traffic and 44.6 percent of freight traffic, suffered the biggest declines at 9.7 percent and 16.9 percent, respectively.

“With no end in sight for the worsening global economy, the 2008 gloom will carry over into the new year. Relief in the oil price has been outstripped by the falls in demand and capacity cuts are not keeping pace. The industry is back in intensive care. Improving efficiency everywhere will be theme for 2009,” according to IATA director general and CEO Giovanni Bisignani.

IATA represents some 230 airlines, including those from the Philippines, comprising 93 percent of scheduled international air traffic.

International capacity dropped by one percent. The November international passenger load factors stood at 72.7 percent which is a decline of approximately  three percentage points compared to the same month last year.

“The 13.5 percent drop in international cargo is shocking. As air cargo handles 35 percent of the value of goods traded internationally, it clearly shows the rapid fall in global trade and the broadening impact of the economic slowdown. By comparison, this is largest drop since 2001, in the aftermath of Sept. 11,” Bisignani said.

“The industry is now shrinking by all measures. The one percent capacity cut in international passenger markets in November could not keep pace with the 4.6 percent fall in passenger demand. We can expect deep losses in the fourth quarter,” he added.

IATA said the November passenger decline of 4.6 percent is a considerable worsening from both the 1.3 percent demand contraction in October and the 2.9 percent fall in September.

Asia-Pacific carriers face the most difficult operating environment with a 9.7 percent decline in November, following a 6.1 percent contraction in October. The region also had the most aggressive capacity cuts at 5.1 percent. While Chinese domestic traffic rebounded after the Olympics, travel to and from international markets continues to decline, reflecting the weakness in both global trade and consumer confidence.