Fell 2.4 Percent in 2003

As one would expect, war, SARS and a sagging economy did not prove well for the international aviation market. So, it comes as no surprise the official traffic numbers slipped in 2003.

On Thursday, the International Air Transport Association (IATA) reported international air travel declined 2.4 percent in 2003 after a narrow gain a year earlier.

The Geneva-based association was upbeat about 2004, however, forecasting traffic growth of 7-8 percent after strong recovery in the last quarter of 2003.

"The war in Iraq, SARS and a world-wide economic slowdown produced a dismal environment for the air transport industry in the first half of 2003," IATA said in a statement.

As traffic fell many carriers cut capacity to lower costs but the IATA said overall capacity rose 0.1 percent.
 
"As these negative factors gradually disappeared and the airlines' vigorous cost-cutting measures took effect we saw a robust traffic recovery in the last quarter," it said.

"The dynamic traffic growth experienced in the second half of 2003 bids well for a healthy trend in 2004 supporting a rebirth of airline profitability," it said.

Passenger traffic rose 5.2 percent in December though the year-on-year rise was slower than a 5.9 percent rise in November.

The Middle East led growth in December, rising 27.7 percent.

The IATA has 275 member carriers from 136 countries representing over 98 percent of scheduled international traffic but excludes domestic routes.  

FMI:  www.iata.org