Airlines are beginning to fill vacant business-class seats with the number of passengers traveling in premium seats in July falling 14 percent, better than the 21.3 percent decline in June. The latest statistics from the IATA suggest recovery but as average fares remain weak, there is little immediate celebration.
Airlines are predicted to lose a total of $11 billion this year according to IATA – $2 billion worse than previously predicted. The impact of the recession on the airline industry is “worse than the impact of 9/11,” according to IATA CEO Giovanni Bisignani. He predicted that losses would continue until 2010 with the industry expected to report a $3.8 billion net loss.
The aviation industry remains in “intensive care” and the months ahead will be marked by many uncertainties, especially the price of oil, according to the International Air Transport Association. International passenger demand fell 2.9% in July compared to July 2008 while freight demand was down 11.3%.
The International Air Transport Association set out an agenda for the Brazilian civil aviation sector, leveraging positive actions by the Government of Brazil to improve competitiveness and deliver broad economic benefits.
The International Air Transport Association said weak passenger demand and falling yields pushed revenue and traffic on international markets down in June, but reported signs of stabilization in the market. Passenger demand fell 7.2% in June, but this was a marginal improvement on the 9.3% fall in May.
The International Air Transport Association welcomed the G8 leaders’ support for a global sectoral approach in dealing with aviation’s emissions in the post-2012 period on the way to a 50% reduction in global greenhouse gas emissions by 2050.
Aviation traffic is falling at a slower rate as the world’s equity markets stabilise, according to latest figures released by the International Air Transport Association (IATA).The aviation governing body said traffic results for May showed a 9.3% drop compared to a year ago, but this as well as April have been marginally stronger than the 11.1% decline reached in March.
Airline fares could fall as carriers struggle to fill empty seats during the downturn, according to a leading economist at the International Air Transport Association. Brian Pearce, regarded as the aviation industry’s leading economist, predicts that fares could fall at least another 10 percent over the next year, coming on top over last year’s falls.
The International Air Transport Association (IATA) has sent a stark warning to the aviation industry with its new prediction of a 30 percent drop in orders for new aircraft globally.Giovanni Bisignani, chief executive of the IATA, said the recession had led to an even greater slump in premium traffic and cargo than the $4.7bn (£2.9bn) forecast it made only 10 weeks ago.
The International Air Transport Association (IATA) called for a major resizing and reshaping of the entire air transport value chain as airlines battle the ongoing global economic crisis. Airlines are expected to post losses of US$9 billion this year with an unprecedented 15% revenue drop that will see industry revenues shrink by US$80 billion to US$448 billion.
IATA has released international traffic data for April 2009 that shows a 3.1% decline in passenger demand and a mammoth 21.7% fall in cargo demand compared to April 2008. The average passenger load factor for the month stood at 74.4%.
IATA has welcomed France’s adoption of a One-Stop Security system. With the new system in place, passengers that have already been screened at a European airport will no longer need to be screened a second time when making flight connections.