Air traffic continues to decline
February 6, 2012
Air freight traffic at Europe’s airports declined in the second half of 2011, to end flat year-on-year in December, airports body ACI Europe said.
Director General Olivier Jankovec said air freight traffic, a closely watched indicator of economic health, increased at the start of last year, before turning negative in the second half of the year, and grew just 1.4% overall, compared with 2010.
And the year-on-year comparisons were inflated by the impact of the volcanic ash crisis and harsh winter conditions in 2010, which hit demand, ACI Europe said. Adjusted to take these factors into account meant freight traffic grew by just 0.6% in 2011.
And rising fuel costs and the inclusion of aviation in the EU Emissions Trading Scheme (ETS) this year will increase costs and impact demand, ACI Europe said.
Meanwhile, airline shares started the year 30% down on last year, as profits slumped 55% in 2011’s final quarter and increased capacity saw aircraft flying less full.
However the latest financial analysis by the International Air Transport Association (IATA) holds a glimmer of hope as shares rebounded 12% last month, with European carriers up 18% and US airlines up 14%.
“The rally showed financial markets upgrading their financial expectations for future airline performance,” IATA says in its Airline Financial Monitor report.
“However, share prices are still down 30% on the start of the year.”
IATA said cargo volumes had started to stabilise at the end of the year, but high fuel prices remained a thorny problem,14% higher last month that in January last year, because of supply restrictions and demand from China.
Courtesy of IFW
