Global air travel slowed in '08, fell in December

Global airline travel growth slowed in 2008, with North American passenger demand falling in December by 4.3 per cent, the International Air Transport Association says.

Overall annual demand increased 1.6 per cent, compared with 7.4 per cent growth in 2007, IATA said Friday.

Making matters worse for the industry, international cargo traffic decreased four per cent for the year but was down a staggering 22.6 per cent in December.

Passenger capacity grew by 3.5 per cent, resulting in a full-year average load factor — or percentage of filled seats — of 75.9 per cent, down from 77.3 per cent a year earlier.

"Airlines are struggling to match capacity with fast-falling demand," said Giovanni Bisignani, director general of the Montreal-based agency.

"Until this comes into balance, even the sharp fall in fuel prices cannot save the industry from drowning in red ink."

December's free fall in global cargo was shocking and a clear sign of the slowdown in world trade, said Bisignani.

Even when much of the global fleet was grounded in September 2001, the decline was only 13.9 per cent, he said. Air cargo represents 35 per cent of the value of goods traded internationally.

Airlines in the Asia-Pacific region saw the biggest decline in international traffic in December at 9.7 per cent. Europe was down 2.7 per cent and Africa was off 4.6 per cent.

Carriers in the Middle East showed a 3.9 per cent increase in demand, while Latin America was up 1.1 per cent.