ATW Daily News

IATA: Apparent September traffic improvement 'misleading,' yields remain 'disaster'

Friday October 30, 2009

IATA reported that September international passenger traffic rose 0.3% year-over-year while cargo traffic fell 5.4%, but warned that the apparent improvement after months of declining passenger traffic and a steep drop in cargo demand is "misleading" because the economic downturn is starting to lap itself.

It cautioned that the seemingly positive September numbers are "largely due to comparisons with an exceptionally weak September 2008 when traffic fell sharply (-2.9% for passenger and -7.7% for cargo)." It noted that load factors for passenger and cargo did return "to pre-crisis levels" in September at 77.1% and 50.8% respectively.

"It is far too early to call this a recovery," DG and CEO Giovanni Bisignani said. "The worst may be over in terms of the fall in demand, but yields continue to be a disaster and costs are rising. The airline industry remains firmly in the red with a fragile business environment." The drop in yields remained "precipitous" in September, according to IATA. Economy yields were down 14% year-over-year, premium sank 18% and cargo lowered 20%. Passenger demand "is now 5% better than the low point reached in March 2009, but 6% below the peak recorded in early 2008," it said.

by Aaron Karp

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