IATA: Volcano Smothers April Air Demand Growth

Disrupting the pace of monthly air traffic improvements, the International Air Transport Association today reported that volcanic activity ravaged European airspace last month, resulting in a 2.4 percent decline in global passenger demand compared with April 2009.

Entering April, IATA said global airline traffic had been building at a pace that would bring passenger volumes back to pre-recession levels this summer, and noted global air demand in March was within 1 percentage point of traffic levels witnessed in March 2008, prior to the banking crisis. "In April, that was pushed back to 7 percent,” said IATA director general and CEO Giovanni Bisignani, comparing last month to April 2008.

IATA said indicators show April is most likely a hiccup caused by volcanic activity, rather than a new directional trend, as preliminary May traffic data "show a rebound in travel from the disrupted levels in April."

Not surprisingly, European carriers were hardest hit by demand declines last month, posting a nearly 12 percent demand drop from April 2009. North American carriers, meanwhile, faced a 2 percent decline in traffic last month, while Asian airlines were hit with a 4 percent decline.