Air cargo takes double digit slide in November

The International Air Transport Association (IATA) announced results for November showing a 4.6% drop in international passenger traffic and a 13.5% drop in international cargo. International capacity dropped by 1.0%. The November international passenger load factors stood at 72.7% which is a decline of approximately 3 percentage points over the same month last year.

The 13.5% drop in international cargo is shocking. As air cargo handles 35% of the value of goods traded internationally, it clearly shows the rapid fall in global trade and the broadening impact of the economic slowdown. By comparison, this is the largest drop since 2001, in the aftermath of September 11,?said Giovanni Bisignani, IATA? Director General and CEO.

The industry is now shrinking in all measures. The 1.0% capacity cut in international passenger markets in November could not keep pace with the 4.6% fall in passenger demand. We can expect deep losses in the fourth quarter, said Bisignani.

Asia-Pacific carriers (representing 44.6% of global freight) saw freight traffic fall by 16.9% in November?the largest decline of any region. As freight accounts for a larger percentage of revenues for the Asia-Pacific carriers, fourth quarter profits for the region? carriers will be disproportionately (and negatively) impacted by the downturn in the global air freight market.

Double-digit freight declines were also experienced by Latin American carriers (-15.7%), North American carriers (-14.4%) and European carriers (-11.0%). Freight traffic for Middle Eastern carriers turned negative (-1.6%), following 1.0% growth in October. African carriers, while being the only region posting freight growth (2.2%), saw a decline from the 3.0% growth posted in October. Plummeting business confidence and the continuing turmoil in financial markets indicates that the worsening trend will be continued in December.<Korea Shipping Gazette>