Air traffic remains strong in face of credit crisis

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The demand for international air traffic is strong despite financial instability worldwide, the director-general of the International Air Transport Association (IATA) said on Sunday following the release of the body's monthly air traffic report.

IATA figures show that international passenger traffic increased 8.2% in September, down slightly from 8.6% in August, but above year-to-date growth of 7.3%.

However, Giovanni Bisignani warned that instability, brought on by global credit crisis that has reverberated around the world, could impact premium air traffic in the coming months as corporations make cut back on travel expenses.

He said this, in addition to rising fuel prices, will put added pressure on airlines.

“Traffic demand remains strong despite the financial instability seen in recent months,” Bisignani said in a statement.

“But it is still early days. Corporations - particularly the financial service sector - adjusting travel budgets could impact premium traffic. And fuel prices rising to new record levels will add more pressure on efficiency. So there can be no let-up in the imperative to keep costs down and planes full.”

IATA said growth in September was boosted by global economic growth, while also reflecting the impact from the security scares that disrupted passenger services and reduced demand during the same period last year.

Average international passenger load factors were 77.4% in September, down from the record levels seen over the past two months but only slightly higher than those recorded in September 2006.

Airlines in Latin America saw the strongest growth in demand, up 24.8%, as they recover from the impact of last year's restructuring.

Demand in Asia Pacific continued its brisk growth of recent months, rising 9.7% due to strong economic expansion in the region and fast-developing markets in China and India.

African airlines saw the weakest growth in September, up just 3.2%, reflecting strong competition on key routes.

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