International air traffic posts double-digit growth in October

MANILA, Philippines - The International Air Transport Association (IATA) said international air traffic in October rose 10.1 percent year-on-year in passenger volume and 14.4 percent in freight.

“As we approach the end of 2010, growth is returning to a more normal pattern. Passenger demand is five percent above pre-crisis levels of early 2008, while freight is one percent above. Where we go from here is dependent on developments in the global economy. The US is spending more to boost its economy. Asia outside of Japan is barrelling forward with high-speed growth. And Europe is tightening its belt as its currency crisis continues. The picture going forward is anything but clear, but for the time being, the recovery seems to be strengthening,” IATA director general and CEO Giovanni Bisignani said.

Freight appears to be at a turning point. Since May, freight volumes have declined by five percent. October saw an end to the decline in freight with a slight uptick. “But a single month does not make a trend. And it remains to be seen if this is the stabilization in freight volumes or the start of an upward trend,” Bisignani noted.

Improvements in demand are being met by a cautious approach to capacity expansion. Over the first 10 months of the year, passenger demand grew by 8.5 percent, with a capacity expansion of four percent. A cargo capacity expansion of 9.2 percent was well below the demand increase of 24 percent. Forward schedules indicate a continuation of this trend, with a 7.5 percent passenger capacity increase planned for the half-year scheduling period beginning end of October.

The 10.1 percent growth in passenger demand in October is slightly below the 10.7 percent recorded in September, but both months are an improvement over August.

Asia-Pacific carriers posted a 7.3 percent demand increase, ahead of a 5.3 percent increase in capacity. Volumes remain one percent below pre-crisis levels of early 2008.

Meanwhile, the 14.4 percent year-on-year increase in freight traffic for October was marginally weaker than the 15.5 percent recorded in September. Nonetheless, international freight volumes actually improved slightly from its September level on a seasonally adjusted basis.

Asia-Pacific airlines reported a 14.9 percent year-on-year increase in international freight demand, down from the 16.2 percent recorded in September. October’s growth translates to an impressive 22 percent annualized growth rate for the region’s carriers, reflecting the strong economic recovery particularly in China and India. With a 44 percent share of total freight traffic, the growth experienced by Asia-Pacific airlines played a large role in the uptick seen in overall industry freight volumes during October.

“We are ending 2010 in much better shape than we were just 12 months ago. Airlines have turned losses into profit - albeit tiny. Despite the economic uncertainties people continue to fly. Airlines appear to be managing capacity in the upturn with a good deal of prudence. And cost control continues to be a main theme for airlines everywhere,” Bisignani said.

IATA represents some 230 airlines, including those from the Philippines, comprising 93 percent of scheduled international air traffic.