October better but rebound still distant

INTERNATIONAL scheduled traffic results for October show conditions are slightly improving. Demand for international cargo rose to 0.5 per cent below previous year levels, significantly better than the 5.4 per cent decline recorded in September. Cargo load factors continue at 54.1 per cent.Cargo traffic is 14 per cent above the December 2008 low point, but remains 15 per cent below the early 2008 peak. Compared to September 2009, seasonally adjusted cargo volumes rose by 2.5 per cent. Carriers in all regions experienced improved demand conditions in October compared to September.European carriers saw the biggest weakness in demand with a fall of 11.3 per cent compared to October 2008; relatively unchanged from the 13 per cent drop in September. The region’s carriers were also the most aggressive in adjusting capacity with a 12.4 per cent cut compared to previous year levels.Middle Eastern carriers saw demand grow 18.4 per cent. This is significantly better than the 3.6 per cent growth experienced in September and outpaced a capacity increase of 11.2 per cent.North American carriers saw a 0.5 per cent growth in demand against a 12 per cent fall in capacity.Latin American carriers recorded a 6.7 per cent growth, significantly higher than the 1.8 per cent in September.Carriers in Asia-Pacific saw demand grow 1.9 per cent compared to -3.1 per cent in September. The region’s carriers have benefited from the airfreight generated by the earlier and stronger economic revival in the region, with industrial production now rising strongly in a number of economies.African carriers saw demand decline 3.8 per cent, an improvement from the -6.9 per cent in September.“The crisis has cost the industry two years of growth. Adjusting costs and capacity to meet that reality will be challenging,” said Giovanni Bisignani, IATA’s director general and chief executive officer.