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UPDATE 1-Air cargo drop may have found its floor - IATA

Published 03/26/2009, 05:43 AM
Updated 03/26/2009, 05:48 AM

(Adds regional breakdown, trade background)

By Laura MacInnis

GENEVA, March 26 (Reuters) - International air cargo traffic fell 22.1 percent in February compared with the same month a year ago, but the decline in freight may have found its floor, the airline industry body IATA said on Thursday.

Freight demand is considered a key barometer for the health of global trade, which has weakened considerably in response to the world's economic downturn and credit crisis.

The February decline was the third consecutive month with cross-border cargo volumes far below the previous-year levels, following a 23.2 percent year-on-year drop in January and a 22.6 percent decline in December.

"We may have found a bottom to the freight decline, but the magnitude of the drop means that it will take time to recover," IATA Director-General Giovanni Bisignani said in a statement.

Freight demand in Asia, the region most affected by the decline in shipments, fell 24.7 percent year-on-year in February, the Geneva-based group said. Japanese exports have almost halved from February 2008, it said.

Air passenger traffic also declined last month, but less sharply than cross-border cargo.

Overall passenger volumes fell 10.1 percent below February 2008 levels, following a 5.6 percent year-on-year fall in January, IATA said.

Asia-Pacific carriers saw a 12.8 percent drop, North American airlines carried 12 percent fewer passengers and Europe's recorded traffic down 10.1 percent, matching the global average. Latin American passenger traffic was slightly stronger, with only a 3.8 percent drop, and in the Middle East it was up 0.4 percent.

IATA, which represents 230 airlines including British Airways , Cathay Pacific <0293.HK>, United Airlines and Emirates [EMIRA.UL], said earlier this week that airlines would lose $4.7 billion this year as a result of the economic downturn that has kept people and cargo from flying.

Its traffic data excludes domestic flights. (Editing by Will Waterman)

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