Struggling airlines faced more trouble in November, with passenger numbers down and freight hit by a 'shocking' 13.5% fall, industry group IATA said today, warning of heavy losses.
Profits at Asia-Pacific carriers, which saw the steepest drop in demand, are expected to be 'disproportionately' affected by the plunge in cargo traffic.
'The industry is now shrinking by all measures. We can expect deep losses in the fourth quarter,' IATA chief Giovanni Bisignani said.
International air passenger traffic in November was down 4.6% from a year earlier, marking the steepest fall in the past three months. In October, passenger traffic was down 1.3% after a fall of 2.9% in September, the International Air Transport Association noted.
Asia-Pacific carriers were hurt most, with a 5.1% cut in capacity unable to offset a 9.7% decline in passenger numbers. North American airlines saw traffic slump 4.8%, hit by 'the near collapse of the investment banking sector and consequent reductions in business travel.'
Meanwhile, international cargo traffic in November witnessed its largest drop since the September 11, 2001 terrorist attacks.
'The 13.5% drop in international cargo is shocking. As air cargo accounts for 35% of the value of goods traded internationally, it clearly shows the rapid fall in global trade and the broadening impact of the economic slowdown,' Bisignani said.
Freight traffic shrank 16.9% for the Asia-Pacific carriers which account for almost half of all air cargo.
IATA said earlier this month that it expects the industry to lose $2.5 billion in 2009 due to the economic crisis after losses of some $5 billion this year.
