Demand drops outpacing strong capacity reductions, yield weakness evident – European traffic review

Despite some of the year's strongest capacity cutbacks by Europe's full service airlines, the decline in demand (RPKs) is still outstripping efforts to cut supply (ASKs). Load factors also appear to have turned a corner, and not one for the better, recording steady declines over the past three weeks and threatening to drop back to the alarmingly low levels witnessed in early 2009.