Airlines continue to battle severe head winds
GENEVA – International scheduled traffic results for June showed passenger demand declining 7.2 percent compared to the same month in the previous year, according to new IATA figures.
International passenger load factors stood at 75.3 percent, down from 77.6 percent recorded in June 2008.
The 7.2 percent drop in international passenger demand was a slight improvement on the 9.3 percent fall in May.
The capacity adjustment of minus 4.3 percent did not keep pace with the fall in demand leaving average fares and yields under significant pressure.
As a result, IATA said the June revenue on international markets fell by a “shocking†25-30 percent.
“International passenger demand remains very weak,†said Giovanni Bisignani, IATA’s director general and CEO.
“Airlines are seeing international revenue falls of up to 30 percent at the start of the busy June-August period when airlines traditionally make their money. The outlook remains bleak.â€
Asia-Pacific carriers were especially hard hit. They recorded a 14.5 percent fall in demand in June compared with the same month a year ago, following a 14.3 percent drop in May.
Fears about Influenza A(H1N1) have also contributed to delaying any early revival in air transport.
Initial estimates suggest the impact of Influenza A(H1N1) took up to 4 percentage points off growth rates for the region’s airlines in June.
Ian Jarrett
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