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IATA NEWS RELEASE
IATA: Stronger Than
Expected Start to 2005
 (Geneva)
"We are off to a great start for 2005 for
international traffic," said Giovanni Bisignani,
Director General and CEO of the International Air
Transport Association (IATA) as IATA released
international traffic data for January. "There is
stronger than expected growth in all regions,
except for Asia Pacific which suffered from the
impact of the Indian Ocean Tsunami."
Passenger traffic
showed a 7.9% increase over the same period in
2004, while cargo improved by 15.5%. Asia-Pacific
growth was stunted at 2.5% in the aftermath of the
Tsunami tragedy. Overall passenger capacity rose by
7.8% leaving the global passenger load factor at
73.5% for January. With the exception of Asia
Pacific and the Middle East, traffic gains lead
capacity expansion.
Asia-Pacific, Middle
Eastern and European carriers are reporting
increasingly better profit numbers while the US
industry continues to experience severe
difficulties. This is particularly true as US
domestic yields suffer severe pressure.
Redeployment of US domestic capacity to
international routes and the continuing weakness of
the US dollar are largely responsible for the 11.8%
rise in traffic by North American
carriers.
"We will likely achieve
5.9% passenger growth this year but the bottom line
remains at risk," said Bisignani. "The persistent
high price of fuel will be difficult to absorb.
While the profitability picture for the industry is
increasingly regionalised there is a universal
theme for 2005&emdash;austerity. There is no
panacea for the problems of the industry, but cost
control must be firmly at the top of the agenda for
all players."
"There is also a severe
'policy risk' to air transport. Too often
politicians and bureaucrats misunderstand and
mis-regulate the industry, harming the employer of
4 million people who support a global economic
output of over US$1.3 trillion," said
Bisignani.
"February was
highlighted by two potentially disastrous
developments. Europe implemented new rules on
compensation for delays and cancellations that fail
both the good law and good sense tests. These add
costs and complexity to an industry that is
simplifying to reduce costs and provide better
value to consumers. At the same time politicians
are bantering proposals for new taxes on aviation
that ignore the fact that aviation already entirely
funds its own infrastructure. The industry is
beginning to recover&emdash;in many ways despite
the efforts of some of our regulators," said
Bisignani.
1. IATA (International
Air Transport Association) represents over 270
airlines comprising 95% of international scheduled
air traffic.
2. Explanation of
measurements:
a. RPK: Revenue
Passenger Kilometres measures actual passenger
traffic
b. ASK: Available Seat
Kilometres measures available passenger
capacity
c. PLF: Passenger Load
Factor is % of ASKs used. In comparison of 2004 to
2003, PLF indicates point differential between the
periods compared.
d. FTK: Freight Tonne
Kilometres measures actual freight
traffic
e. ATK: Available Tonne
Kilometres measures available total capacity
(combined passenger and cargo)
3. IATA statistics
cover international scheduled air traffic; domestic
traffic is not included.
4. All figures are
provisional and represent total reporting at time
of publication plus estimates for missing
data.
5. Due to uncertainties
in the adoption of the new ICAO statistical
definitions by reporting carriers, care should be
taken when making year comparisons.
6. For more information
please see:
a. Aviation Fuel Tax:
http://www.iata.org/pressroom/serious_solutions.htm
b. European
Compensation Rules for cancellations and delays:
http://www.iata.org/pressroom/denied_boarding_16_Feb.htm
c. Previous IATA Press
Releases on European Compensation
Rules:
IATA Challenges EU on
Flawed Regulation - Airlines Can't Make the
Sunshine
http://www.iata.org/pressroom/pr/2004-04-21-01.htm
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