Air traffic falls for 5th month in a row

Global - The International Air Transport Association (IATA) has announced a fifth consecutive month of global decline in international air traffic for the month of October.

October's load factor was 75%, approximately 2% below previous year levels, as international air freight traffic contracted for the fifth consecutive month by a further 7.9%.

Giovanni Bisignani, IATA's director general and CEO said, "The gloom continues and the situation of the industry remains critical. While the drop in oil prices is welcome relief, recession is now the biggest threat to airline profitability."

"The deepening slump in cargo markets is a clear indication that the worst is yet to come," continued Bisignani.

The 7.9% drop in air freight for the month of October has dragged year-to-date air freight volume to 0.8% below the same period last year.

According to IATA, forecast declines in key air cargo sectors such as semi-conductors indicate that weakness is expected to continue.

Asia-Pacific carriers, which account for 44.7% of the international cargo market, saw international freight traffic decline by 11.0%, reflecting the sharp drop in the region's exports.

Bisignani said, "As the global economic downturn re-shapes the world's financial industry, policy makers must also understand that change is needed in air transport. Unlike the finance industry, airlines are not asking for handouts. Commercial freedom, efficiency and a fair treatment in taxes are needed."