Use access key #2 to skip to page content.

Global air traffic may have bottomed

Recs

5

June 25, 2009 – Comments (1) | RELATED TICKERS: OMAB , PAC , ASR

FWIW, the International Air Transport Association believes that the 9.3% drop in airline passenger traffic that the industry experienced worldwide last month may represent a bottom. This 9.3% decline follows a massive 11.1% drop in March and a 3.1% decline in April.

Things are even worse on the cargo side. International air cargo traffic dropped 17.4%. This is actually an improvement though from the negative 20-something percent numbers that the industry had been putting up since December.

Not surprisingly, swine flu concerns have absolutely crushed Mexican air traffic. Passenger traffic to Mexico fell by 40% in May.  Ouch.  Despite this terrible news, the stocks of Mexican airports OMAB, PAC, and ASR have been on a roll.  I knew that once the initial reports about swine flu didn't hammer these stocks that they had seen at least a temporary bottom and I ended my CAPS short of them while they were still in the green.

Even though the IATA doesn't expect traffic to continue to fall, it is not looking for a rapid recovery either. The group's CEO called the current slowdown "the worst we have ever seen.”

Air Traffic Decline of 9.3% May Represent ‘Floor,’ IATA Says

Deej

1 Comments – Post Your Own

#1) On June 25, 2009 at 6:59 AM, nicholas987 (< 20) wrote:

Air passenger traffic did fall, when the Far East Asiaian countries were striken by the "Bird Flu" virus. Now the "swine Flu" has done again.

I doubt, Is this a "Bio wa" going on? or just a natural thing to occur repeatedly? EVENT after EVENT :-(

I was planning to spend my summer vacation after completing my long hard

cisco training

in Mexican Gulf, but ruined  by this Swine flu out brea.  :-(

Report this comment

Featured Broker Partners


Advertisement