Air cargo traffic worldwide plummeted by 22.6% in December 2008

The worldwide airline industry suffered a “shocking” 22.6% fall in air cargo traffic in December 2008, the International Air Transport Association (IATA) has said. This followed a 13.5% decrease in air cargo traffic in November 2008.

According to the International Air Transport Association, the international industry trade group of airlines that represents 230 airlines worldwide, passenger numbers grew by 1.6% for the full year of 2008 (down from an increase of 7.4% in 2007), but fell by 4.6% in December 2008.

International air cargo traffic declined by 4% across 2008, but went down further by 22.6% in December 2008.

Giovanni Bisignani, director-general and CEO of the International Air Transport Association, said the fall in air cargo traffic surpassed the drop in the aftermath of the September 11 terrorist attacks in the United States.

“This,” Bisignani said in a statement, “stressed the severity of the global downturn” and described “the 22.6% freefall” in the global air cargo traffic as “unprecedented and shocking.” Even in September 2001, when much of the global fleet was grounded, the decline in air cargo was only 13.9%, he added.

On the fate of the air cargo traffic, Giovanni Bisignani continued in the statement: “The 22.6% drop in international cargo traffic in December 2008 puts us in uncharted territory and the bottom is nowhere in sight.”

According to the International Air Transport Association – which represents and leads the airline industry in general – air cargo accounts for around one-third of the value of goods traded internationally.

Data collected by the IATA shows that business travel also has fallen globally. According to the IATA statement, there was an 11.5% slump in the number of premium tickets issued in November 2008. And, the drop in sales of business-class will contribute to a projected loss of $2.5 billion (£1.7 billion) in 2009 – bringing the total loss in 2008 and 2009 to $7.5 billion. The IATA said the latest estimates for 2009 were based on a 3% decline in passenger numbers.

It added that the sharp fall in air cargo traffic was a sign of reduction in consumer spending.
Air cargo comprises a vast array of goods, including food, which is perishable, as well as high-value computer components.

The Asia-Pacific region, which accounts for 45% of global air cargo traffic, was the worst hit in 2008, with a 26% decline over 2007. And, this reflected a fall in demand for the goods manufactured in the region as a result of the global economic recession.

According to the IATA, while carriers based in North America reported a 22% drop in their cargo business, the Europe-based airlines witnessed a 21.2% slump. It may be noted that the plunge in air cargo traffic comes together with an equally sharp fall in the volume of goods carried by ship in the recent months.