IATA’s latest report on international traffic, for the month of April, continues a very gloomy tone, as growth slows across the world and load factors trend remorselessly downwards †“the clearest sign that airlines have been facing a faster than anticipated slowdown since the start of the year.”
Load factors fell “significantly” in Apr-08. As the report notes, this is “also bad news for airline profitability since the 70% rise in crude oil prices to an average USD98 a barrel in Q108 will have raised break-even load factors substantially
Load factors fell “significantly” in Apr-08. As the report notes, this is “also bad news for airline profitability since the 70% rise in crude oil prices to an average USD98 a barrel in Q108 will have raised break-even load factors substantially
In Europe, the load factor picture is less attractive still, showing almost as steep a load factor fall for the month as the US.And Europe more steeply than the average…
The figures are distorted to some extent in comparisons with last year as a result of Easter falling in March in 2008. But the trend is unavoidable.Growth is slowing faster than expected – just as fuel prices rise much faster than expected. Again, Europe’s growth rate has declined steeply by global standards.
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