International air freight demand further declined in April with a 21.7% fall compared to a 21.4%decline in March and there is no sign of recovery in sight, the International Air Transport
Association (IATA) reported.For the fifth consecutive month, air cargo demand is showing a fall of more than 20% andremains at very weak levels, the airline association said. “This sideways progression may indicatethat we have seen the worst of the economic downturn. Business confidence is improving, butinventories remain high. Until inventories adjust to more normal levels, air freight volumes willlikely continue to bounce along the bottom,” IATA commented.
In April, carriers in all regions showed double digit declines. Middle Eastern carriers hadthe strongest performance in relative terms with -11.1%. Latin American carriers showed the biggestdecline with -24.2% followed by Europe, North America and Asia with -23.3%, -22.4% and -22.3%respectively.
“We are not out of the woods yet,” said Giovanni Bisignani, IATA’s Director General and CEO. “ Freight remains at shockingly low levels. The worst may be over. However, we have not yet seen anysigns that recovery is imminent.”
“With each day of the recession, the challenges for the air transport industry are mounting.Flexibility has never been more important. But there is not enough of it. Airlines remainconstrained by old rules that restrict basic commercial freedoms such as access to markets andcapital. Much of the cost base remains out of our control – from volatile fuel prices to monopolyinfrastructure charges. And many governments simply don’t understand the need for urgent change. Weneed a change in mindset. To manage through this ongoing crisis, every player in the air transportvalue chain must be prepared to drive change,” he further explained.
