No QF Cargo, maybe here's why?
International airline traffic (RPKs) rose 8.8% in May compared to the same month last year, according to IATA.With capacity (ASKs) up 7.3%, passenger load factor improved to 71.9%. However, May freight traffic (FTKs) declined 1.6% year-on-year on a 6.9% increase in capacity. "As a leading economic indicator, the slowdown in cargo traffic demonstrates that the high price of oil is slowing the global economy faster than expected," said IATA DG and CEO Giovanni Bisignani.
All IATA regions experienced positive passenger traffic growth, with the Middle East up the most--17.9% against a 15.2% rise in ASKs. This was followed by Latin America, where RPKs grew 13.3% on a 12.6% gain in ASKs. North America RPKs climbed 11.5% on a 9.2% increase in capacity, while Asia/Pacific RPKs were up 7.3% on a 6.3% boost in ASKs. Africa was the only region where capacity growth exceeded traffic growth, up 8.8% and 9.9% respectively over May 2004. The slowest growing region, Europe, posted a 6.6% RPK rise on a 4.9% increase in capacity.
Turning to cargo, four regions experienced negative traffic growth: Asia/Pacific, Europe, Latin America and North America.
For the first five months of the year, RPKs rose 8.7% against a 7.5% increase in ASKs, while FTKs were up 3.1% on a 7.4% gain in ATKs.
With oil tipping $60 per barrel, Bisignani expects to see a downward trend in passenger traffic as the slide in economic activity works its way through the economy. "Our projection of a $6 billion industry loss is looking optimistic and the need for continued cost reduction is critical," he stated.