Passenger demand surges to 18-month high - IATA
Geneva - The International Air Transport Association (IATA) released
traffic results for November 2007. The highlights are:
Passenger Traffic
. Year-on-year international passenger demand rose 9.3 per cent in
November-the fastest growth rate recorded in 18 months. This is higher
than the 7.7 per cent growth recorded in October and the 7.5 per cent
growth recorded over the first 11 months of 2007.
. Average international passenger load factors were 75.4 per cent in
November, 1.1 percentage points higher than in November 2006.
. Passenger demand results were strong across most regions.
. Asia Pacific (8.8 per cent), North America (7.6 per cent) and
Europe (7.6 per cent) all saw robust growth in November with no sign yet
of any weakening in demand as a result of economic uncertainty.
. Latin American carriers recorded a 20.1 per cent increase
reflecting a strong recovery in traffic share following the impact of
industry restructuring during 2006.
. Middle East carriers continued four years of double-digit growth
with an 18.3 per cent increase.
. African carriers' growth slowed to 5.8 per cent largely due to
weaker demand in southern Africa and strong competition in long-haul
markets.
Freight Traffic
. Freight growth continues to be sluggish, reflecting strong
competition with sea shipping and uncertainty over the economic outlook
for 2008:
. International freight demand growth slowed to 3.5 per cent in
November, down from 3.6 per cent in October.
. Over the first 11 months of 2007 freight demand grew 3.9 per cent,
well below the 4.8 per cent recorded over the same period in 2006.
"It's a mixed picture," IATA's Director General and CEO said Giovanni
Bisignani. "The global economy ended 2007 on a surprisingly strong note.
The November surge in passenger demand has been critical in combating
high oil prices and helping airlines end 2007 with an industry profit of
US$5.6 billion-the first since 2000.
But against a backdrop of robust world trade, sluggish freight growth
continued to be a disappointment." "We ring in 2008 with a warning bell.
Passenger demand growth is expected to fall to 5.0 per cent. And the
expected increase in freight demand growth to 4.3 per cent will only
help us recover some of the ground lost against sea shipping.
High oil prices and the impact of the credit crunch will see industry
profitability slip to US$5.0 billion in 2008. Since 2001 efficiency
gains have been impressive: 64 per cent improvement in labour
productivity, 25 per cent reduction in sales and marketing unit costs
and a 16% decrease in non-fuel unit costs.
The challenge for 2008 will be much more of the same-efficiency
everywhere," Bisignani said. |