7DaysinParadise
Travel => Airlines => Topic started by: Bulldog on July 31, 2009, 07:55:37 PM
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The International Air Transport Association (IATA) reports international scheduled traffic results for June show passenger demand declining 7.2% compared to the same month in 2008. International passenger load factors stood at 75.3%, down from 77.6% recorded in June 2008. The 7.2% drop in international passenger demand was a slight improvement on the 9.3% fall in May. The capacity adjustment of -4.3% did not keep pace with the fall in demand leaving average fares and yields under significant pressure. As a result, June revenue on international markets fell by 25-30%.
“International passenger demand remains very weak,” said IATA director general Giovanni Bisignani. “While it appears that there is stabilization in some markets, this comes at a steep price. Capacity cuts have not kept pace with demand falls. Even with lower fares, the load factor remains 2.3% below last year’s levels. Airlines are seeing international revenue falls of up to 30% at the start of the busy June-August period when airlines traditionally make their money. The outlook remains bleak.”
He added, “These are extremely challenging times for airlines. There are no signs of an early economic recovery. Other external risks are potentially great, including rising oil prices and the impact of Influenza A(H1N1) on demand. Cash flow is threatened by weak demand, exaggerated by fare discounting. And, after years of cost reduction, the scope for further cuts is limited. Flexibility is critical in finding new sources of capital and new markets. This crisis highlights the need for governments to replace outdated restrictions on ownership and market access with modern commercial freedoms. Quick action is needed.”
http://www.travelpress.com/PHP/news.php?sid=8692