IATA TRAFFIC TRENDS WEAKEN IN FIRST 6 MONTHS

Passenger traffic growth on the international scheduled services of IATA airlines fell from a ‘year on year’ rate of around 10 percent in January, to little more than 1 percent in June - giving a cumulative rate of slightly less than 3 percent for the first 6 months. After negligible growth in Jan-Mar, freight traffic actually declined for the next three months, to give a cumulative rate of growth of minus 3 percent for the first 6 months.

During the first six months of 2001, total traffic (passengers plus freight) grew by only 0.5 percent, against a total capacity increase of 4.0 percent (these figures do not appear on the summary table, below).

“These figures point to a worrisome evaporation of traffic growth,” said IATA Director General & CEO Pierre J. Jeanniot. “Unless IATA Members are able to drastically curtail their capacity growth during the next few months and further control their costs, all prospect of profitability for the year 2001 will quickly disappear.”

IATA MEMBERS' AVERAGE Jun 2001 Jan-Jun 2001

(International Scheduled Services)

Passenger Traffic, % change over '00 +1 +3

(Revenue-Passenger-kilometres)

Passenger Seat Supply, % change over '00 +2 +3

(Available-Seat-kilometres)

Passenger Load Factor, (% points) 75 72

Freight Traffic, % change over '00 - 6 - 3

(Revenue Tonne-kilometres)

Source: Extracted from IATA Monthly International Statistics.