Friday, October 31, 2008

The IATA Calls the drop In International Air passenger and Cargo Traffic Alarming

5 comments:

Rafe A. Schaefer said...

The drop in international air passenger rates is quite substantial, but there are two other significant factors that I think should also be taken into consideration.

First, September air travel should obviously fall from August air travel. The amount of individuals flying in September will be significantly less than the number of international fliers traveling during the summer months. That seems quite natural to me.

Second, and more economically alarming, as credit markets freeze up and more FDI money returns to US markets, it seems natural that investment opportunities in foreign countries would take a back seat to shoring up returns in the US and other stable economies. This short term cash inflow into the stable economies of the world (the US and Eurozone)from emerging economies translates into more certain returns for US/Euro firms which helps them maintain long-term firm visions.

WestonD. said...

I don't find this alarming eventhough the drop is quite large. Even with the recent drop in gas prices people are still concerned with increasing costs of travel these days. Money is being held on to tighter and spending everywhere has decreased. With the country being in a recession and the rest of the world seeming to follow, spending money on travel will keep decreasing.

Kokojan said...

I agree with Rafe. The summer months are going to bring in higher revenues, because more people travel in the summer than in winter. However, a "substantial" drop?? did we see a "substantial" increase going into the summer months?

Jason Dunn said...

I'm going to have to agree with what Rafe said here. It would seem normal that air travel should fall from August to September. Even though these airlines haven't seen a decline in these numbers for quite some time, our economy hasn't been in this situation for quite some time either. People just don't have the extra money right now to travel.

Abby Sorensen said...

I could understand why it was so expensive to fly when gas was so high but now that gas prices have dropped it is still very expensive. They all try and find more ways to take your money with checking your bag and charging for drinks. I believe more people will be driving places during this years holidays.