Airlines face tough 2009

GENEVA – International air freight traffic plunged 22,6 per cent in December compared to a year earlier, an unprecedented and shocking’ free fall that signals a broader slump in world trade, industry data showed yesterday.

The International Air Transport Association said airlines faced one of their toughest years ever, with passenger traffic dropping 4,6 per cent year-on-year in December, even after a boost from advance bookings of holiday travel. The data is also bad news for the broader global economy – a third of world trade is in goods sent by air. ‘Keep your seatbelts fastened and prepare for a bumpy ride and a hard landing, h said IATA Director-General Giovanni Bisignani. ‘The 22,6 per cent drop in international cargo traffic in December puts us in uncharted territory and the bottom is nowhere in sight, Bisignani, previously chief executive of Air Italia, added. Global airlines are set to post US$2,5 billion in losses in 2009 after suffering a US$5 billion loss last year, according to the industry body, which links 230 airlines comprising 93 per cent of scheduled international air traffic. Its projections remain based on a fuel price of US$60 per barrel, a decline of three per cent in passenger volumes and a drop of five per cent in cargo traffic. ‘We don’t want bail-outs. But we need to change the ownership rules. Almost every other business has the freedom to access to global capital and the ability to merge across borders where it makes sense. To manage this crisis, airlines need the same management tools,’ Bisignani said. Nampa/Reuters