Sharper downturn in air travel expected in months ahead but upward trend in Oct-2011: IATA

In stark contrast to the decline in airfreight growth in Oct-2011, the trend for passenger air travel remained upwards in Oct-2011, but with very strong regional differences and weakening growth rates, IATA stated this week. IATA also cautioned that a "sharper slowdown in air travel is likely in the months ahead", amid continued weakness in freight and economic markets and consumer confidence levels.

Global passenger traffic (RPKs) growth slowed to 3.6% in Oct-2011, with traffic growth rates weakening from the 6% average in the first 10 months of the year and a growth rate of 5.6% in Sep-2011. However, this decline in the year-to-year comparison was partly due to a spike in travel in Oct-2010, IATA said. International traffic, at 4.6% growth, was stronger than the 2.0% increase in domestic traffic in the month. Meanwhile, load factors weakened by 1.9 ppts to 77.6%.