IATA: Global passenger traffic, cargo volume slump further in August

 Manila Bulletin
October 6, 2011

The airline industry has shifted gears downward, with passenger demand slowing down and freight shrinking at a faster pace in August due to the continued slump in business and consumer confidence, according to the International Air Transport Association (IATA).

While international passenger demand increased 4.5% in August this year versus the same period in 2010, it was a significant fall from the 6.0% recorded in July.

On the other hand, the 3.8% contraction in freight markets recorded in August was more than double the pace of July’s 1.8% decline.

“There’s not much optimism for improved conditions any time soon,” confirmed Tony Tyler, IATA’s Director General and CEO.

Comparisons of July to August more clearly indicate the slowdown. The total passenger market fell by 1.6% inAugust compared to July. International markets declined by 1.8%, while already weak domestic markets shrank by 1.0%. The total cargo market fell by 1.3%.

Passenger load factors were high at 81.4%, almost as high as in July.

While this is close to historically high levels reflecting the industry’s ability to efficiently allocate capacity, it too showed weakness—falling by 1.3% compared to July.


International passenger demand was up 6.2% in August compared to the previous year. However, when compared to July, demand contracted by 1.8%.

Asia-Pacific carriers reported 5.3% demand growth for August, slightly below a 5.6% capacity expansion. This is slightly better than the year-to-date  growth of 4.4%, reflecting the recovery in Japanese international travel. Load factors of 78.9% were below the industry average of 81.2%.

Middle Eastern carriers recorded the second highest demand growth at 6.7%, behind capacity expansion of 7.6%, leaving load factors down at 76.2%.

North American carriers reported the weakest performance with growth of just 2.9%, which was partly a result of equally slow growth in capacity.

This is a sharp downturn from stronger growth earlier in the year, as reflected in the 5.6% year-to-date demand expansion. The region’s carriers posted the highest load factor at 86.1%.

European airlines achieved the strongest growth ininternational passenger traffic in August with a 7.9%
increase, just slightly below a capacity expansion of 8.2%. Although domestic economies and leisure travel are weak, strong exports have led to increased business travel on international markets. Load factors of 83.9% were at historically high levels.