Friday May 2, 01:08 PM
International air traffic continues to slow in March: IATA
GENEVA (AFP) - International air traffic growth continued to slow in March as the industry was hit by soaring fuel costs and the global credit crunch, the International Air Transport Association said on Friday.
As a result, IATA's chief urged airlines to move towards consolidation, saying the industry's fortunes "have taken a major turn for the worse."
Compared to a year ago, international traffic grew only 4.0 percent in March.
IATA noted that the slowdown, particularly in Asia-Pacific (002790.KS - news) traffic growth to just 4.3 percent, was significant as the region's booming economies had been expected to "immunise them (against) the US slowdown."
Middle East carriers continued to post double-digit growth of 15.4 percent but this was still sharply lower than the 20.4 percent posted a year earlier.
In North America, international traffic increased 6.3 percent while Europe rose 3.7 percent.
Only Latin American traffic posted higher-than-expected growth of 19.7 percent, boosted by strong demand.
"Traffic only tells a part of the story. Astronomical oil prices are hitting hard and the buffer of an expanding economy has disappeared. The fortunes of the industry have taken a major turn for the worse," IATA director general and chief executive Giovanni Bisignani said.
He noted that with such "such dramatic shifts in the global economy, consolidation is critical."
Consolidation in the United States, where Delta Air Lines and Northwest Airlines (NWACQ.PK - news) unveiled a 17.7-billion-dollar merger plan, is welcomed, he said.
"But it makes no sense that consolidation is limited to domestic partners. This is a global industry that needs to be run like a global business. The US-EU Open Sky Agreement second stage talks that open in May must deliver a modern approach to ownership rules," he said.
The "Open Skies" accord allows airlines greater freedom to fly between Europe and the United States, replacing restrictive arrangements agreed many years ago.
British Airways (LSE: BAY.L - news) said Wednesday it was examining closer cooperation with US carriers American Airlines and Continental Airlines (NYSE: CAL - news) but gave no additional information.
|
|
|
Send Article by Email
Send Article by IM
Blog This with Y! 360
Printable View
