The International Air Transport Association (IATA) reports international scheduled traffic results for July showing passenger demand declining 2.9% compared to the same month in the previous year, with international passenger load factors at 80.3%. The July passenger demand fall of 2.9% was a relative improvement over the 7.2% drop in June and the 6.8% decline recorded over the first seven months of the year. July capacity was more in line with reduced demand than in previous months and load factors are similar to those recorded in July 2008.
These positive developments, however, have come at the expense of yields which continue to fall sharply. “Demand may look better, but the bottom line has not improved. We have seen little change to the unprecedented fall in yields and revenues. The months ahead are marked by many uncertainties, including the price of oil. The road to recovery will be both slow and volatile. In the meantime, the industry remains in intensive care,” says IATA director general Giovanni Bisignani. “Airlines need to make their money in the June-August peak travel season. Planes are full. Load factors are high. But revenues are way down. Conserving cash, effectively managing capacity and cutting costs will be the long-term theme for every business in the air transport value chain.”