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2009: Worst Year Ever for Air Transport Industry in Post-war Era
IATA reports record declines in freight traffic as industry copes with recession, faces continued billions in losses; increased security costs weigh
Geneva — February 3, 2010 — International scheduled air traffic suffered its worst decline in the post-war era last year, as air freight fell 10.1 percent, with an average load factor of 49.1 percent, and the industry is poised to lose billions of dollars this year, according to figures released by the International Air Transport Association (IATA).
The IATA's report on December and full-year 2009 demand statistics showed the industry ending 2009 with the largest ever drop. In addition to the fall in freight, passenger demand for the full year was down 3.5 percent, with an average load factor of 75.6 percent.
"In terms of demand, 2009 goes into the history books as the worst year the industry has ever seen," said Giovanni Bisignani, IATA's director general and CEO. "We have permanently lost 2.5 years of growth in passenger markets and 3.5 years of growth in the freight business."
In December freight capacity grew 0.6 percent above year-ago levels, while international passenger capacity fell 0.7 percent over the same period. Yields have started to improve with tighter supply-demand conditions in recent months, but they remained 5-10 percent down on 2008 levels.
"Revenue improvements will be at a much slower pace than the demand growth that we are starting to see. Profitability will be even slower to recover, and airlines will lose an expected $5.6 billion in 2010," said Bisignani.
Seasonally adjusted demand figures for December compared to November 2009 indicate a 1.6 percent rise in passenger traffic, while freight remained basically flat with a 0.2 percent decline.
International Freight Demand
December 2009 freight demand showed a 24.4 percent improvement on December 2008, with a load factor of 54.1 percent. This improvement is exaggerated by the exceptionally weak performance in December 2008, which was the low point on the cycle.
Freight demand is still 9 percent lower than the peak in early 2008, but optimism is returning to the industry as purchasing managers survey indicators reached a 44-month high in December, pointing towards increased freight volumes in the coming months.
Asia-Pacific carriers accounted for over 60 percent of the increase in international air freight markets over the past 12 months — outperforming their 45 percent market share. Despite this improvement, Asia-Pacific carriers' freight volumes remain 8 percent below peak levels.
Elsewhere, European carriers remain 20 percent below 2008 peak levels, reflecting the glacial pace of economic recovery in Europe compared to Asia-Pacific. Middle East carriers and Latin American carriers are smaller market participants, but ended the year better than peak levels by 7 percent and 21 percent respectively.
The IATA's report on December and full-year 2009 demand statistics showed the industry ending 2009 with the largest ever drop. In addition to the fall in freight, passenger demand for the full year was down 3.5 percent, with an average load factor of 75.6 percent.
"In terms of demand, 2009 goes into the history books as the worst year the industry has ever seen," said Giovanni Bisignani, IATA's director general and CEO. "We have permanently lost 2.5 years of growth in passenger markets and 3.5 years of growth in the freight business."
In December freight capacity grew 0.6 percent above year-ago levels, while international passenger capacity fell 0.7 percent over the same period. Yields have started to improve with tighter supply-demand conditions in recent months, but they remained 5-10 percent down on 2008 levels.
"Revenue improvements will be at a much slower pace than the demand growth that we are starting to see. Profitability will be even slower to recover, and airlines will lose an expected $5.6 billion in 2010," said Bisignani.
Seasonally adjusted demand figures for December compared to November 2009 indicate a 1.6 percent rise in passenger traffic, while freight remained basically flat with a 0.2 percent decline.
International Freight Demand
December 2009 freight demand showed a 24.4 percent improvement on December 2008, with a load factor of 54.1 percent. This improvement is exaggerated by the exceptionally weak performance in December 2008, which was the low point on the cycle.
Freight demand is still 9 percent lower than the peak in early 2008, but optimism is returning to the industry as purchasing managers survey indicators reached a 44-month high in December, pointing towards increased freight volumes in the coming months.
Asia-Pacific carriers accounted for over 60 percent of the increase in international air freight markets over the past 12 months — outperforming their 45 percent market share. Despite this improvement, Asia-Pacific carriers' freight volumes remain 8 percent below peak levels.
Elsewhere, European carriers remain 20 percent below 2008 peak levels, reflecting the glacial pace of economic recovery in Europe compared to Asia-Pacific. Middle East carriers and Latin American carriers are smaller market participants, but ended the year better than peak levels by 7 percent and 21 percent respectively.
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