Air traffic stabilises but airline revenues get worse: IATA
Revenues of most international airlines continue to decline, even as passenger traffic seems to have stabilised with the rate of decline coming down in June, the IATA has said.
New Delhi: Revenues of most international airlines continue to decline, even as passenger traffic seems to have stabilised with the rate of decline coming down in June, the IATA has said.
Despite the "stabilisation" in air traffic, the revenues of airlines the world over continued "to get worse" in the second quarter, the International Air Transport Association (IATA) said in its latest traffic monitor report.
However, at the end of this quarter, "there were tentative signs of a floor being reached for revenues as well as passenger numbers," it said.
The number of passengers flown in June indicate "some stabilisation in air travel demand." The total passenger traffic declined from the levels of last year, slowing from 9.2 percent in May to 7.1 percent in June.
Domestic travel in Asia was "rising at an average rate of around four per cent during the first half of 2009", it said, adding that this was dominated by the Chinese market.
As a result, overall passenger numbers in domestic markets appear to be falling at a rate of around 6-7 percent in the first half of this year, which is "slightly slower rate than the decline on the international markets".
Stronger growth in domestic markets of the Asia-Pacific region in recent months has "reduced this rate of decline to 2.5 percent by June", the report said.