Global air passenger demand sees steepest decline since 9/11: IATA

Air passenger demand nosedived 14.1 per cent globally last month compared to Feb 2019. ST PHOTO: ALPHONSUS CHERN

GENEVA (AFP) - The coronavirus pandemic sent global air passenger demand plunging 14 per cent in February, marking the steepest decline in traffic since the Sept 11 attacks in 2001, the global aviation association said on Thursday (April 2).

Fresh data from the International Air Transport Association (IATA) showed that air passenger demand, measured in the number of kilometres travelled by paying passengers, nosedived 14.1 per cent globally last month compared to February 2019.

"This was the steepest decline in traffic since 9/11," IATA said in a statement, adding that the slump "reflected collapsing domestic travel in China and sharply falling international demand to/from and within the Asia-Pacific region, owing to the spreading Covid-19 (disease)... and government-imposed travel restrictions."

The pain was not evenly distributed, with carriers in the Asia-Pacific region suffering a 41 per cent drop.

Global airline capacity meanwhile fell by 8.7 per cent in February as airlines scrambled to cut back services in line with plunging traffic.

"Airlines were hit by a sledgehammer called Covid-19 in February," IATA chief Alexandre de Juniac said in a statement.

His comment came as the number of people infected with Covid-19 approached a million, including nearly 50,000 who have died from the virus, spurring governments to order around half of humanity to remain at home.

"The impact on aviation has left airlines with little to do except cut costs and take emergency measures in an attempt to survive in these extraordinary circumstances," Mr Juniac said, pointing out that since February, the situation "has only grown worse".

INDUSTRY'S 'BIGGEST CRISIS'

"Without a doubt this is the biggest crisis that the industry has ever faced."

The IATA data showed that international passenger demand, which covers only international flights, fell 10.1 per cent year-on-year in February, marking the worst slump since the Sars outbreak in 2003, while international capacity fell five per cent.

The impact was again felt most in the Asia-Pacific region, where airlines saw a 30.4 per cent drop in international traffic.

European carriers meanwhile saw demand for international flights remain virtually flat in February, showing their weakest performance in a decade, and IATA warned that the March figures would be far worse for the region that has overtaken Asia as the epicentre of the pandemic.

Meanwhile, worldwide demand for domestic air travel dropped 20.9 per cent in February compared to the same month last year.

The Chinese domestic market all but collapsed, with an 83.6 per cent drop in passenger demand, marking the worst outcome since IATA began tracking the market in year 2000, it said.

Domestic traffic meanwhile soared in the US in February, jumping 10.1 per cent, but the IATA said demand fell towards the end of the month, with results expected to have slowed significantly in March.

"This is aviation's darkest hour and it is difficult to see a sunrise ahead unless governments do more to support the industry through this unprecedented global crisis," Mr Juniac said.

The IATA has estimated that airlines may burn through US$61 billion (S$87.26 billion) of their cash reserves during the second quarter of the year, including US$35 billion worth of sold-but-unused tickets due to widespread flight cancellations amid government-imposed travel restrictions.

"Air transport will play a much-needed role in supporting the inevitable recovery. But without additional government action today, the industry will not be in a position to help when skies are brighter tomorrow," said Mr Juniac.

Join ST's Telegram channel here and get the latest breaking news delivered to you.