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December 30, 2008 23:55 PM

International Cargo Down 13.5 Pct In November

KUALA LUMPUR, Dec 30 (Bernama) -- The International Air Transport Association (IATA) announced international passenger traffic in November dropped 4.6 percent drop while international cargo declined 13.5 percent.

International capacity dropped by one percent while the November international passenger load factors stood at 72.7 percent, down about three percentage points over the same month last year, IATA said in a statement issued from Geneva Tuesday.

"The 13.5 percert drop in international cargo is shocking," IATA said.

As air cargo handles 35 percent of the value of goods traded internationally, it clearly shows the rapid fall in global trade and the broadening impact of the economic slowdown.

"By comparison, this is largest drop since 2001, in the aftermath of September 11," said Giovanni Bisignani, IATA's Director General and Chief Executive Officer.

"The industry is now shrinking by all measures. The 1.0 percent capacity cut in international passenger markets in November could not keep pace with the 4.6 percent fall in passenger demand."

"We can expect deep losses in the fourth quarter," said Bisignani.

The November passenger decline of 4.6 percent is a considerable worsening from both the 1.3 percent demand contraction in October and the 2.9 percent fall in September.

Asia-Pacific carriers face the most difficult operating environment with a 9.7 percent decline in November, following a 6.1 percent contraction in October.

The region also had the most aggressive capacity cuts at -5.1 percent.

While Chinese domestic traffic rebounded after the Olympics, travel to and from international markets continues to decline, reflecting the weakness in both global trade and consumer confidence.

North American carriers saw international traffic decline by 4.8% - the second largest drop among the regions. Until August, the region's carriers had been shifting capacity to international markets.

With the near collapse of the investment banking sector and consequent reductions in business travel, North Atlantic travel slumped, IATA said.

Carriers have started to cut international capacity with a 0.8 percent drop in November (following 0.4 percent growth in October).

Asia-Pacific carriers (representing 44.6 percent of global freight) saw freight traffic fall by 16.9 percent in November, the largest decline of any region.

"With no end in sight for the worsening global economy, the 2008 gloom will carry over into the new year," said IATA.

"Relief in the oil price has been outstripped by the falls in demand and capacity cuts are not keeping pace. The industry is back in intensive care. Improving efficiency everywhere will be theme for 2009," said Bisignani.

-- BERNAMA

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