To begin with, the global slump in air cargo demand has continued into 2009, according to the most recent report from the International Air Transport Association (IATA) in Zurich, Switzerland. Following what the organization labeled an "alarming collapse" in December, it reports year-over-year demand experienced a further 23.2% drop in January. Asia Pacific carriers, which represent more than 40% of the market, led the decline with a 28.1% year-over-year drop. European carriers followed with a 23% decline, while North American carriers recorded a 19.3% drop.

The Association of Asia Pacific Airlines (AAPA) in Kuala Lumpur, Malaysia reports a slightly smaller drop for its region at 23.6%, but AAPA director Andrew Herdman nonetheless calls the operating environment extremely challenging. "The collapse in world trade is having a severe impact on air freight demand, forcing airlines to temporarily ground a number of dedicated freighter aircraft," he says, noting that Asian-Pacific airlines have grounded planes accounting for more than 50% of the world's total air freight capacity.

Additional reports from individual airlines indicate the decline continued into February. According to Lufthansa Cargo, freight traffic in February tumbled 24.9% from a year ago as the deepening global recession slashed shipments on its Americas and Asian routes, while British Airways reported freight traffic declined 20.7% from February '08. Air France-KLM, Europe's largest airline, also saw February cargo volume fall, dropping 18.5% from a year ago due to steep declines on key Asia-Pacific and Americas routes.