International air cargo volumes dropped by 16.5% in June, according to figures released yesterdayrepresenting a moderate improvement on the monthly declines from extremely weak levels of 20% – 25%
so far this year. Demand was down 20.6% over the first half year of 2009, the International AirTransport Association (IATA) figures showed.The 16.5% decline in international cargo demand is a slight improvement compared to the 17.4%drop in May. IATA said there has been some improvement in world trade and, after adjusting forseasonal fluctuations, freight volumes rose 6% from the low point recorded in December 2008.However, the utilisation of air freight capacity on international routes remained very weak at47.3% in June due to unbalanced trade flows with Asia and some market share loss to oceantransport.
In terms of the major regional markets, Asia Pacific airlines recorded a 15.8% fall infreight last month leaving them 22.3% down for the year to date. European airlines had a 20.3% dropin cargo volumes in June and had a 21.6% decline over the first six months. In North America,freight demand dropped 18.6% last month and was 22.2% lower between January and June.
The Middle East continued to perform best in relative terms, with freight demand down only4.2% in June and 5.5% lower for the year to date. Latin American carriers flew 14.2% less cargolast month and African airlines had a 20.2% fall.
In the passenger business, worldwide demand dropped 7.2% in June representing a slightimprovement on the 9.3% fall in May and is now 7.6% down for the year to date. Passenger capacitywas reduced industry-wide by 4.3% last month and by 3.9% for the first half year of 2009.
“International passenger demand remains very weak,” said Giovanni Bisignani, IATA’s DirectorGeneral and CEO. “While it appears that there is stabilisation in some markets, this comes at asteep price. Capacity cuts have not kept pace with demand falls. Even with lower fares, the loadfactor remains 2.3% below last year’s levels. Airlines are seeing international revenue falls of upto 30% at the start of the busy June-August period when airlines traditionally make their money.The outlook remains bleak,” he added.
“These are extremely challenging times for airlines. There are no signs of an early economicrecovery. Other external risks are potentially great, including rising oil prices and the impact ofInfluenza A (H1N1) on demand,” Bisignani also noted.
