Statistics compiled by IATA show that international scheduled traffic fell 7.2% in the month of June, a slight improvement over a 9.3% year-over-year decline for May.
However, IATA says a 4.3% drop in capacity for the month of June "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 a shocking 25-30%".
Examining demand by region IATA notes Asia-Pacific carriers saw a 14.5% decline in demand during June as North American airlines reported an improvement as the fall in demand moderated at 6.7% compared with 10.9% in May. But IATA says the North American improvement is likely due to discounting.
IATA data show European carriers also saw some moderation as traffic fell 7.1% in June compared with at 9.4% drop in May. In Latin America the 4.7% fall in demand was a marked improvement from May's 9.2% drop as IATA explains there are early indications the region is starting to recover from H1N1.
Middle Eastern carriers are showing particularly strong results as traffic grew 12.9% on a 15% capacity expansion in June. African carriers saw traffic fall 5.9% in June on international routes, largely from market share losses as IATA explains most African economies are growing despite the global recession.
"While it appears that there is stabilization in some markets, this comes at a steep price," says IATA CEO Giovanni Bisignani, "Capacity cuts have not kept pace with demand falls."
IATA's analysis shows cargo demand for the month of June was 16.5% below the prior year's levels, but IATA does highlight it is a moderate improvement over demand in May, which was 17.4% lower than 2008 levels.
Source: Air Transport Intelligence news
