Aviation industry to stay in red in 2010

first_imgSource = e-Travel Blackboard: J.L Airlines are expected to lose US$5.6 billion this year despite improved demand for international air traffic in January, the International Air Transport Association (IATA) said today.In January 2010, international passenger traffic hiked 8.6 percent compared to the low point of the cycle in February 2009.However, IATA said demand needs to improve by a further 2 percent to return to the peak levels of early 2008.Similarly, international freight traffic has improved 28 percent, but must improve 3-4 percent to return to peak levels.Passenger demand for January was up 6.4 percent while load factor improved 1.2 percentage points to 75.9 percent compared to 72.2 percent in the same period a year ago.The strongest upturns were seen Asia, Latin America and the Middle East.“We can start to see the future with some cautious optimism, but better volumes do not necessarily mean better profits” said IATA Director General and chief executive Giovanni Bisignani.“Passenger yields are still 15% below peak. And we expect 2010 losses to be US$5.6 billion,”Bisignani called again for governments across the globe to open their skies.“Unfortunately, the constraints of the archaic bilateral system limit airlines from being able to respond as normal businesses to market opportunities” he said.“Political borders limit opportunities for consolidation. And we still require governments to negotiate open markets”“With each open skies bilateral, we take a step in the right direction. Recovering from the years of lost growth as a result of this crisis is a long and hard journey. Governments should not make it any more difficult by maintaining policies that restrict airlines ability to do business” <a href=”http://www.etbtravelnews.global/click/291e9/” target=”_blank”><img src=”http://adsvr.travelads.biz/www/delivery/avw.php?zoneid=10&amp;cb=INSERT_RANDOM_NUMBER_HERE&amp;n=a5c63036″ border=”0″ alt=””></a>last_img

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