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 WORLD ATM DIRECTORY & ANSP REPORT 2020 \ 5
• China’s airlines saw domestic passenger traffic expand by 7.8% in 2019, the slowest pace since the global financial crisis. Softer economic activity amid the US-China trade war, compounded by weaker consumer spending and unrest in Hong Kong all contributed to the slowdown. Looking into early 2020, any positive impacts of the ‘phase one’ trade agreement with the US likely will be countered by the impact of the coronavirus outbreak.
• Indian airlines’ four years of double-digit demand growth came to a halt in 2019, as traffic rose 5.1%, down from 18.9% in 2018. The bankruptcy of Jet Airways and weake- ning economic activity were the main culprits of the slowdown.
2019 Worst Year for Air Freight Demand Since 2009
Geneva - The International Air Transport Association (IATA) released full-year 2019 data for global air freight markets showing that demand, measured in freight tonne kilometers (FTKs), fell by 3.3% compared to 2018 while capacity (AFTK) rose by 2.1%. This was the first year of declining freight volumes since 2012, and the weakest performance since the global financial crisis in 2009 (when air freight markets contracted by 9.7%).
In the month of December, cargo volumes contracted 2.7% year-on-year while capacity rose 2.8%.
Air cargo’s performance in 2019 was dampened by weak growth in global trade of just 0.9%. The sector’s underperformance was also due in particular to slowing GDP growth in manufacturing- intensive economies. Softer business and consumer confidence, along with falling export orders, also contributed to air freight struggles.
There are signs that confidence and orders could pick up in 2020. It is too early to say what long-term effects will be seen from the impact of restrictions associated with combatting the coronavirus outbreak.
“Trade tensions are at the root of the worst year for air cargo since the end of the Global Financial Crisis in 2009. While these are easing, there is little relief in that good news as we are in unknown territory with respect to the eventual impact of the coronavirus on the global economy. With all the restrictions being put in place, it will certainly be a drag on economic growth. And, for sure, 2020 will be another challenging year for the air cargo business,” said Alexandre de Juniac, IATA’s
Director General and CEO.
  THE BOTTOM LINE:
“2019 was a difficult year for aviation and 2020 is off to a tragic and challenging beginning.
The shooting down of PS 752 in January was inexcu- sable. Commercial aircraft are instruments of peace, not military targets. To honor the victims of this tra- gedy we must address this challenge with govern- ments and stakeholders. Our thoughts are also with the injured, and the families of those who lost their lives, in the PC2193 accident in Turkey yesterday. Safety is the aviation industry’s number one priority and we are united in our desire to understand and learn from the circumstances of this tragedy.
Today, headlines are also focused on the novel coro- navirus. From our experience of past outbreaks, air- lines have well-developed standards and best practi- ces to keep travel safe. And airlines are assisting the World Health Organization (WHO) and public health authorities in efforts to contain the outbreak in line with the International Health Regulations. There cur- rently is no advice from WHO to restrict travel or trade. But it is clear that demand has fallen on routes associated with China, and airlines are responding to this by cutting capacity for both domestic and inter- national China. The situation is evolving fast, but we are observing significant schedules adjustments for February.” said de Juniac.





















































































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