"For the fourth consecutive month, international cargo demand is hovering in the -21% to -24% region as a result of the sharp drop in world trade," said IATA director general & CEO Giovanni Bisignani. "It's not the end of the recession, but we may have found the floor."
The severity of airfreight slump is partially driven by manufacturers seeking to correct large inventory overhangs that emerged in late-2008. The stabilisation of the inventory-to-sales ratio has in turn stabilised airfreight demand. Recovery, however, depends on purchasing that can deplete the inventory overhang. Inventory levels remain high and final demand is weak.
In terms of market share, the Asia Pacific region accounted for 43.6% of the global freight volumes. Europe accounted for 27.2%, North America for 16%, the Middle East for 10.2%, Latin America for 2.2% and Africa for 0.9%.
Bisignani pointed out that airlines face many challenges. "Like the rest of the economy, recovery in the air transport sector rests on a rise in consumer confidence and consumer spending. Shedding debt will be a major headwind."
He added that the challenge for governments is to turn stimulus funds into spending that fuels trade.
Noting the deteriorating financial situation of many airlines, Bisignani urged governments to move forward with liberalisation - particularly of the archaic ownership restrictions that prevent cross-border access to capital and consolidation.
"Air transport is an economic catalyst and can play an important role in driving recovery, but only if we are financially sound. Access to global capital and the freedom to consolidate would go a long way to shoring up this industry - without government bailouts," said Bisignani.
