By Roderick T. dela Cruz

Movement of international air passenger and cargo both went down in November from a year ago, in a sign that the global financial crisis reduced people’s spending for travel and stifled trade.

The International Air Transport Association, in a statement, said international air passenger traffic dropped 4.6 percent in November while international cargo fell 13.5 percent in the same month.

Overall, the international air passenger market shrank 1 percent year-on-year in November, according to the association.

“With no end in sight for the worsening global economy, the 2008 gloom will carry over into the new year. Relief in the oil price has been outstripped by the falls in demand and capacity cuts are not keeping pace. The industry is back in intensive care. Improving efficiency everywhere will be theme for 2009,” said Giovanni Bisignani, director- general of the International Air Transport Association.

Airlines carried less passengers during the month, with the average international passenger load factors going down by 3 percentage points to 72.7 percent in November from the same month last year.

The 4.6 percent decline in November passenger traffic was steeper than the 1.3 percent demand contraction in October and the 2.9 percent fall in September.

But authorities were more alarmed by the deeper problem in air cargo business. Bisignani described the 13.5 percent drop in international cargo as shocking.

“As air cargo handles 35 percent of the value of goods traded internationally, it clearly shows the rapid fall in global trade and the broadening impact of the economic slowdown. By comparison, this is largest drop since 2001, in the aftermath of Sept. 11,” Bisignani added.

He said the air transport industry was now shrinking by all measures. “The 1.0 percent capacity cut in international passenger markets in November could not keep pace with the 4.6 percent fall in passenger demand. We can expect deep losses in the fourth quarter,” said Bisignani.

Airlines in the Asia-Pacific region saw a 9.7 percent decline in traffic in November, following a 6.1 percent contraction in October.

North American carriers also saw international traffic decline by 4.8 percent while European airlines experienced a 3.4 percent drop. On the other hand, Middle Easters carriers saw traffic increase 5.6 percent in November.