Search
 

International Air Freight Decline Slows

Year-over-year decline for May was four points lower than April. June reports from some individual airlines indicate rate of decline continues to fall.

By John McCloud | Updated on July 15, 2009

GENEVA, SWITZERLAND-Owners of air freight facilities found reason for optimism in the newest data from the the International Air Transport Association. Though the organization’s report on May freight volumes shows international air freight traffic declined 17.4% in May compared with a year ago, it also shows the fall was notably smaller than the 21.7% year-on-year decline recorded in April.

Moreover, the IATA points out that air freight volumes experienced their first significant month-to-month improvement of 2009 in May, and IATA surveys of purchasing managers indicate the possibility of further improvement in air freight demand in June and July. Levels for those months are forecast to be only 12% to 15% below the same periods last year.

Nonetheless, the organization warns air freight companies and their landlords not to look on the changes as a sign the recession is ending. It says inventories that remain 10% to 15% higher than normal in relation to sales indicate a significant recovery is not expected in the near term. “We have lost several years of growth and yields are under severe pressure,” says IATA director general and CEO Giovanni Bisignani. “Airlines are in survival mode. Cutting costs and conserving cash are the priorities.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.