Early signs of global air travel slowing down are evident from a recent IATA (International Air Transport Association) report which says that air travel across the globe has dipped 2.9% for September 2008, as compared to previous month. However, IATA has taken up the issue with various governments on finding a solution to this grim scenario. Over 230 airlines from across the globe are members of the IATA, a trade body that deals with air traffic related issues.
Taking a peek at the traffic slowdown figures revealed by IATA, African carriers posted the largest decline in traffic at -7.8%, followed by Asia-Pacific carriers with a 6.8% drop in the month under preview (September) and European carriers saw a traffic drop of -0.5%.
Simultaneous to a slow down in passenger traffic, even cargo movements have recorded an alarming dip in September 2008. For instance, Asia Pacific carriers- the largest players in the market, have reported a 10.6% decline followed by Europe and North American carriers with a fall of 6.8% and 6% respectively.
Says, Giovanni Bisignani, director general, and CEO, IATA, ?The deterioration in traffic is alarmingly fast-paced and widespread. We have not seen such a decline in passenger traffic since SARS in 2003.? He further adds that 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. ?At this rate, losses may be even deeper than our forecast $5.2 billion for this year.?
However, Bisignani points out at the banking sector which is taking government aid is able to access global capital. ?Airlines across the globe are not asking for any government handouts. But the current crisis highlights the need for airlines to be able to run their businesses smoothly,? says Bisignani.
Aviation analysts also feel that the current traffic decline is the worst in the past five years. ?The rules of the game have been tweaked. Premium airlines which charged a moon for any long haul flights are now offering attractive air fares to bring in load factors,? says an analyst adding that the airline industry is clamoring for a government aid amongst other options or else many airlines with a weak balance sheet will have to fold up in quick time.