IATA Numbers Show Air Passenger Improvement
Dave BondThe International Air Transport Association (IATA) reported that there has been an increase in demand for international air passenger travel during the month of October over the same period last year.
Officials at IATA said they witnessed a 0.5 percent rise in passengers for the October period, although cargo demand experienced a decrease of 0.5 percent over October 2008.
Starting after March, when air traffic hit bottom, the modest improvement in passenger numbers is similar to the rate of growth experienced in both 2006 and 2007.
IATA director general and chief executive Giovanni Bisignani explained via a news release that the economic downturn has erased two years worth of growth. He added that adjusting capacity and costs in order to meet that reality of the industry will represent a challenge.
He also said that despite the slump in cargo demand, the numbers fare better that figures seen in September where the sector witnessed a 5.4 percent year-to-year drop.
Load factors for cargo and passenger continued at pre-recession 54.1 percent and 78 percent respective levels due to careful management of the capacities.
The overall capacity for passenger service was reduced to 3.3 percent in October over the same period last year while cargo experienced a drop in capacity of 7.4 percent.
IATA said air fares still have not demonstrated much improvement, remaining about 20 percent less expensive for a flight today than a year ago despite a small rise since mid-year.
According to Bisignani, all business tools which are taken for granted in every other industry will be required to properly manage out of this crisis.
He added that the global economy necessitates a financially sustainable air sector as a catalyst.
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Filed under Business & Finance, Travel News, World News