IATA: Volume starts stabilizing, yields low
The International Air Transport Association said Thursday that global air freight volume fell 20 percent in the first quarter of 2009, but that volume has started stabilizing after hitting a low point in December.
In a cargo market update, IATA said that excess capacity in the global fleet is now the major problem, keep load factors low despite the stabilization in volume. Loads fell 7 percent in the quarter, but more worrying, yields dropped 17 percent.
Many airlines have parked freighters in an effort to balance demand and supply, but IATA said while 99 freighters are now parked, widebody passenger plane capacity is up.
On the plus side, fuel prices are 60 percent lower than the same time in 2008 and nearly even with prices at the start of the year. However, IATA cautioned that crude prices are on the rise, up $20 per barrel so far this year.
“Cargo profitability has been under extreme pressure from collapsing volumes and yields in the past six months,” the association said.
IATA: Volume starts stabilizing, yields low
