‘Tip of the iceberg’ as disruption hits
Growth in demand for air travel slowed to a level not seen for almost 10 years even before major coronavirus disruption hit, the International Air Transport Association says.
It has released its traffic data for January, which measures total revenue passenger kilometres.
By this standard, global airline travel had increased 2.4 per cent compared to the year before.
That was down from 4.6 per cent annual growth the year before and the smallest year-onyear increase since April 2010 when a volcanic ash cloud disrupted travel in Europe.
‘‘January was just the tip of the iceberg in terms of the traffic impacts we are seeing owing to the Covid-19 outbreak, given that major travel restrictions in China did not begin until January 23. Nevertheless, it was still enough to cause our slowest traffic growth in nearly a decade,’’ said Alexandre de Juniac, IATA’s director general and chief executive.
Asia-Pacific airlines’ January traffic increased 2.5 per cent compared to 2019, the slowest rate of growth since 2013.
‘‘The Covid-19 outbreak is a global crisis that is testing the resilience not only of the airline industry but of the global economy,’’ de Juniac said.
‘‘Airlines are experiencing double-digit declines in demand, and on many routes traffic has collapsed. Aircraft are being parked and employees are being asked to take unpaid leave. In this emergency, governments need to consider the maintenance of air transport links in their response. Suspension of the 80/20 slot use rule, and relief on airport fees at airports where demand has disappeared are two important steps that can help ensure that airlines are positioned to provide support during the crisis and eventually in the recovery.’’
Air New Zealand has suspended flights to China and Korea and reduced its flights to Samoa.
‘‘Airlines are experiencing doubledigit declines in demand, and on many routes traffic has collapsed.’’ Alexandre de Juniac
IATA chief executive
It has been predicted the virus could take as much as $100 million off its profit this financial year.
On Wednesday, it was reported that Korean Air had suspended its flights to Auckland until March 28.
Air Chathams has reduced its services between Wellington and the Chatham Islands.
Demand for global air freight dropped 3.3 per cent globally in January compared to 2019.
Asia-Pacific airlines had the biggest drop in cargo demand, down 5.9 per cent.
‘‘January marked the tenth consecutive month of year-onyear declines in cargo volumes.
‘‘Tough times are ahead. The course of future events is unclear, but this is a sector that has proven its resilience time and again,’’ de Juniac said.