IATA Alarmed With September's Steep Decline In Global Air Traffic

Geneva, Switzerland (AHN) - The International Air Transport Association said Friday that the steep decline in global air traffic in September is alarming, an indication that the airline industry is in a crisis.

According to September statistics released by IATA, passenger traffic slumped 2.9 percent while cargo traffic dropped 7.7 percent over the same period last year, and decreased by 4.4 percent from August to September's 74.8 percent.

"The deterioration in traffic is alarmingly fast-paced and widespread. We have not seen such a decline in passenger traffic since the SARS crisis in 2003. Even the good news that the oil price has fallen to half its July peak is not enough to offset the impact of the drop in demand," said Giovanni Bisignani, IATA's director general, in a statement.

"The industry crisis is deepening - along with the crisis in the global economy. Unlike other companies, they are denied some basic commercial freedoms - access to markets and to global capital - that could help them manage their business in this difficult time," he added.

All major regions posted declines in passenger traffic in September, except for Latin America, which increased of 1.7 percent. The figure however is still down compared with the 11.9 percent increase in August.

For passenger traffic, Asia-Pacific experienced a 6.8 percent drop, North America at 0.9 percent and Europe 0.5 percent.

For cargo traffic, all regions except the Middle East and Africa reported negative results. Asia-Pacific, the largest player in the air freight market, posted a 10.6 percent decline while Europe and North America fell 6.8 percent and 6.0 percent, respectively.

The 230-member airline body said that it forecasts industry losses worth $5.2 billion this year.