IATA Data Show Air Traffic Losses Easing

Worldwide passenger traffic declined by 1.1 percent in August compared with the same period in 2008, the smallest year-over-year drop in 2009, according to International Air Transport Association traffic results released today.

Since the 11 percent year-over-year traffic decline this March, "seasonally adjusted passenger demand has improved by 6 percent," IATA said, "but traffic levels remain 5 percent below May 2008, when the fall in demand began." IATA's August figures show that carriers in all regions, with the exception of the Middle East, "saw improved demand conditions in August compared to July."

Though year-over-year August passenger demand improved from July's 2.9 percent annual decline, IATA stressed that the traffic improvements are not helping worldwide airlines overcome ongoing pricing softness—down 22 percent for premium seats and 18 percent for economy seats, compared with August 2008.

"Demand continues to improve, but profitability remains ever distant," said IATA director general and CEO Giovanni Bisignani. "Fares have stabilized, but at profitless levels. Meanwhile, cost pressures are mounting from reduced aircraft utilization and rising oil prices. The industry is not out of the woods yet."