IATA: 2008 slump’s start props September figures

IATA: 2008 slumpÆs start props September figures    The International Air Transport Association said Thursday that September global air freight volume shrunk to its lowest point of the year in September, down 5.4 percent.
   IATA called it 'a marked improvement from the 20-percent-plus decline experienced in the first half of the year.'
   However, IATA cautioned that the relative improvement was due mostly to the fact that September 2008 volumes were low, coming as they did in the first month of the global economic meltdown.
   'The question is whether this dip is just statistical noise or a break in the recently established upward trend in travel and freight volumes,' IATA said in its latest monthly economic update. 'Since it reflects a similar September dip in business and consumer confidence in the U.S. and other economies, the answer to this question depends critically on how durable is the economic upturn. There still seems to be further to go for the inventory cycle to boost air freight.'
   IATA said freight load factors are now back to pre-recession levels, which should help stabilize yields.
   'However, capacity has been cut by reducing average hours flown by the aircraft fleet and that is an upward pressure on unit costs,' the organization said. 'The rise in freight demand combined with tight control of capacity has now pulled freight load factors back up to pre-recession levels. At 50.8 percent air freight load factors are the highest they have been for almost a year.'
   Improvements in performance in September came chiefly from the Asia-Pacific, Latin America and Middle East regions, with Europe's numbers actually deteriorating from August and North America continuing to be in a rut.
   'Geographically the numbers are not as striking as for passenger markets, but that is because freight fell so much further at the end of last year,' IATA said. 'But similar patterns can be seen, driving by economic conditions, with Asia-Pacific airlines seeing a big improvement and positive growth being experienced by airlines in the Middle East and Latin America.'