FALL IN PASSENGER DEMAND INTERRUPTS INDUSTRY`S RECOVERY FROM RECESSION, SAYS IATA

KUALA LUMPUR, May 27 (Bernama) -- The international passenger demand, which
declined by 2.4 per cent year-on-year in April 2010, has interrupted the air
transport industry's recovery from the recession.

In a statement here Thursday, the International Air Transport Association
(Iata) attributed the downtrend to massive flight cancellations centred in
Europe during the six days in April due to the eruptions of an Icelandic
volcano.

It said the international scheduled cargo traffic, less impacted by the
cancellations, saw the pace of its recovery slowed to 25.2 per cent growth in
April, down from the 28.1 per cent improvement recorded in March.

Iata's director-general/chief executive officer, Giovanni Bisignani, said
the ash crisis knocked back the global recovery and impacted carriers in all
regions.

"Last month, we were within one per cent of pre-crisis traffic levels in
2008. In April, that was pushed back to seven per cent," he said.

Bisignani said European carriers were the worst hit to record a 11.7 per
cent fall in passenger traffic.

He said the Asia-Pacific carriers saw their strong growth slowed to 3.5 per
cent from the 12.9 per cent growth recorded in March.

North American carriers posted a 1.9 per cent decline in demand, primarily
as a result of the impact of the ash crisis on North Atlantic routes, he said.

"This is a major step backwards from the 7.8 per cent growth recorded in
March.

"This fall in demand was less than half the 4.5 per cent cut in capacity,
pushing load factors to 80.2 per cent," he said.

On cargo demand, he said, the freight growth was expected to slow down over
the rest of the year.

"In April, European carriers showed the weakest growth at 8.3 per cent, down
from the 11.5 per cent growth recorded in March.

"Poor economic performance prior to the ash crisis had seen European
airlines lagging behind the rebound experienced by other regions," he said.

Bisignani said the Asia-Pacific carriers, which made up 46 per cent of
international cargo operations, recorded a growth of 33.2 per cent, slightly
below the 35.4 per cent recorded during March.

North American carriers recorded a 23.8 per cent increase, he said.

"The ash crisis was a shock. While there is always a danger of the
consequences of renewed volcanic eruptions, the impact on passenger confidence
should be limited.

"Unfortunately, we are trading ash for two additional uncertainties --
strikes and a growing currency crisis -- both of which are also focused on
Europe," he said.

-- BERNAMA