International air cargo traffic could decline by 5% next year, which would be the worst annual dropsince 2001, according to a new forecast from the International Air Transport Association (IATA).
Cargo traffic is expected to decline by 5% in 2009 following a drop of 1.5% in 2008, IATAsaid. Prior to 2008, the last time that cargo declined was in 2001 when a 6% drop was recorded.
Giovanni Bisignani, IATA’s Director General and CEO, made special note of the continuingcontraction of air cargo traffic that started in June 2008. “Air cargo comprises 35% of valueof goods traded internationally. The 7.9% decline in October is a clear indication that the worstis yet to come – for airlines and the slowing global economy,”
The airline association, whose 230 members comprising 93% of scheduled international airtraffic, also warned that passenger volumes could drop 3% in 2009 and that the world’s airlinescould make a combined loss of about $2.5 billion, following $5 billion of losses in 2008, and couldsuffer a 6.5% revenue drop.
“The outlook is bleak. The chronic industry crisis will continue into 2009 with US$2.5billion in losses. We face the worst revenue environment in 50 years,” Bisignani said.
