International passenger traffic down 89% in February, no sign of recovery: IATA

Global airline industry body IATA said international passenger traffic plunged 89% in February compared to the same month last year as COVID-19 infections climbed once more, and there was no sign of an aviation recovery yet.

International passenger traffic was down almost 89% and is showing no signs of recovery in the current environment,” IATA’s new director general Willie Walsh said at a presentation on Wednesday.

Read more: International passenger traffic down 89% in February, no sign of recovery: IATA | Reuters

Coronavirus: Air travel won't return to pre-crisis levels until 2023, IATA chief warns

When will flights resume between US and EU?

The trade association for the world’s airlines said that demand for air travel had dropped more than 90% in Europe and the U.S. since the start of the pandemic, and warned that recovery will be even slower if lockdowns and travel restrictions are extended.

“We are asking governments to have a phased approach to restart the industry and to fly again,” Alexandre de Juniac, the IATA’s director general and CEO, told CNBC’s “Squawk Box Europe” on Thursday. De Juniac is hopeful that some flying will resume by the summer.

“We are aiming at reopening and boosting the domestic market by end of the second quarter, and opening the regional or continental markets — such as Europe, North America or Asia-Pacific — by the third quarter, and intercontinental in the fall,” he said.

“So for summer we hope that you will see flights within Europe coming back, with I hope interesting prices and very safe processes of control.”

The European Union’s external borders remain closed to non-EU nationals until mid-June. The European Commission has recommended a phased approach for its member states to reopen borders that would start with countries with low levels of coronavirus infections.

Read more at: Coronavirus: Air travel won't return to pre-crisis levels until 2023, IATA chief warns

Air Freight Demand Increasing - IATA: "Growth in airfreight demand in 2014 supported by increased trade and business activity "

IATA stated year-on-year growth in global FTKs in 2014 was underpinned by improving global trade and stronger business activity. IATA director general and CEO Tony Tyler said overall cargo demand is clearly stronger than in 2013, with Asia Pacific and Middle East carriers benefiting most from improved market conditions.

Mr Tyler said Europe is "still in recovery mode" while the Americas remains a "weak spot."

Asia Pacific growth is expected to continue with on-going expansion in China's manufacturing sector. The reduced performance of European carriers may reflect weakness in recent manufacturing and export activity. Overall decreased performance from North American airlines may reflect weakness in trade volumes following severe weather events in 1st Q 2014, while recent data suggests stronger business activity, which may support improved airfreight volumes in the coming months.

Middle East carriers continue to expand strongly, capitalising on growth opportunities by expanding in emerging markets such as Uganda and Mexico.

Latin American airlines showed a sharp contraction in Jun-2014 and a decline in 1st half 2014 due to sluggish trade growth and weakness in Brazil's economy.

Growth for African carriers was affected by a slowdown in some regional economies, notably South Africa, but improving trade data suggests a more optimistic outlook for 2nd Half 2014..

EU-Digest

CNBC:Switzerland - IATA says World Airline Industry to Lose $4.7 Billion in 2009

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Switzerland - IATA says World Airline Industry to Lose $4.7 Billion in 2009 says IATA

World airlines are set to lose $4.7 billion this year as a result of the global recession that has shrunk passenger and cargo demand, industry body IATA said. The International Air Transport Association had estimated in December the industry would lose $2.5 billion in 2009.IATA the Swiss-based body said its latest forecast was based on a view that the economy and air transport demand would hit bottom by mid-2009 and then start to recover.

"We do expect better prospects toward the end of this year or the beginning of 2010," Bisignani told a news conference at Geneva airport. Leading airlines have slashed fares to encourage continued travel and unveiled a range of cost-cutting measures to stay afloat throughout an economic slump. Fares should stay low throughout the year while airlines compete for the business that remains until global economic activity rebounds, Bisignani said.