The International Air Transport Association Archives | For Immediate Release | Official News Wire for the Travel Industry

Korean Air and the Hanjin Group Chairman and founder of Skyteam died in Los Angeles

April 8, 2019 by Forimmediaterelease

Yang Ho Cho, 70, Chairman and CEO of Korean Air and the Hanjin Group, died peacefully April 7 in a Los Angeles hospital after a brief illness. He was considered to be an Air transport pioneer.

Mr. Cho’s reach extended far beyond Asia. He was a founder of the Skyteam international airline alliance and led the bid committee that took the 2018 Winter Olympics to Korea. He recently completed development of the iconic Wilshire Grand complex in downtown Los Angeles, the tallest building west of the Mississippi.

He served on the Board of Governors of the International Air Transport Association (IATA); the Board of Trustees of his alma mater, University of Southern California; and has received honorary doctorate degrees from Embry Riddle Aeronautical University (Florida) and the Ukraine National Aviation University.

Under his guidance, Korean Air became a global powerhouse flying to 124 cities and 44 countries, emerging as America’s largest Asian airline with 15 North American gateways. He recently negotiated a joint venture with Atlanta-based Delta Air Lines, that created the industry’s most comprehensive transpacific network. The airlines are scheduled to launch a new non-stop route between Boston and Seoul on April 12.

Mr. Cho was in the airline industry all his life, as his father, Choong-Hoon Cho, had acquired and privatized Korean Air 50 years ago. The younger Cho was named the airline’s Chairman and CEO in 1999 having served as President and CEO four years earlier. Mr. Cho began working for Korean Air as a manager in the Americas Regional Headquarters in Los Angeles in 1974 after graduating from the University of Southern California.

Three weeks ago Korean Air investors removed him from the board in a victory for shareholder activism.

Mr. Cho’s leadership has been widely recognized over the years. He was awarded the title of `Grand Officier’ in France’s Légion d’Honneur, ‘Polaris’ in Mongolia and also the `Mugunghwa Medal’ in Korea – all of which are the highest order of civil merit awarded in these countries.

In addition to his corporate responsibilities, Mr. Cho was vice chairman of the Federation of Korean Industries, co-chairman of the Korea-U.S. Business Council, and served as the co-president of l’Année France-Corée 2015-2016’, celebrating 130 years of diplomatic relations between Korea and France.

Mr. Cho is survived by his wife, Myung-hee Lee, son Walter, daughters Heather and Emily and five grandsons. Services are pending in South Korea.

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IATA Report: Aviation continues to deliver solid

April 4, 2019 by Forimmediaterelease

The International Air Transport Association (IATA) announced global passenger traffic results for February 2019 showing total revenue passenger kilometers (RPKs) rose 5.3%, compared to February 2018. This was the slowest rate of growth in more than a year but still in line with long-term demand trends. Monthly capacity (available seat kilometers or ASKs) increased by 5.4%, and load factor slipped 0.1 percentage point to 80.6%, which is still high by historic standards.

“After January’s strong performance, we settled down a bit in February, in line with concerns about the broader economic outlook. Continuing trade tensions between the US and China, and unresolved uncertainty over Brexit are also weighing on the outlook for travel,” said Alexandre de Juniac, IATA’s Director General and CEO.

February 2019 (% year-on-year)	World share¹	RPK	ASK	PLF (%-pt)²	PLF (level)³
Total Market	100.0%	5.3%	5.4%	-0.1%	80.6%
Africa	2.1%	2.8%	1.1%	1.1%	70.4%
Asia Pacific	34.5%	6.3%	5.8%	0.4%	82.6%
Europe	26.7%	7.3%	7.7%	-0.3%	81.5%
Latin America	5.1%	5.0%	5.5%	-0.4%	81.3%
Middle East	9.2%	-0.9%	2.7%	-2.6%	72.6%
North America	22.4%	4.2%	3.9%	0.3%	80.8%

nternational Passenger Markets

February international passenger demand rose 4.6% compared to February 2018, which was a slowdown from 5.9% growth in January. Capacity climbed 5.1%, and load factor dropped 0.4 percentage point to 79.5%. Airlines in all regions but the Middle East showed traffic growth versus the year-ago period.

European carriers showed the strongest performance for a fifth consecutive month in February. Passenger demand increased by 7.6%, compared to a year ago, unchanged from January. Europe’s continuing strong performance provides a paradox given Brexit concerns and signs of a softer economic outlook. Capacity rose 8.0% and load factor slid 0.3 percentage point to 82.3%, which still was the highest among regions.
Asia-Pacific airlines’ February traffic rose 4.2% compared to the year-ago period, a substantial slowdown from the 7.2% increase recorded in January. The timing of the Lunar New Year holiday in the first week of February this year may have shifted some traffic to January. Capacity increased 4.7% and load factor dipped 0.3 percentage point to 81.0%.
Middle East carriers recorded a 0.8% traffic decline in February compared to a year ago, the only region to report a drop year-over-year. Capacity rose 2.9% and load factor fell 2.7 percentage points to 72.6%. Broadly speaking, passenger volumes of the region’s airlines have been moving sideways for the past 12 – 15 months.
North American airlines’ traffic climbed 4.2% in February, a decline from 5.4% growth in January. Capacity rose 2.9% and load factor was up 1.0 percentage point to 79.0%. Signs of softening economic activity at the end of 2018, in conjunction with the effects of ongoing tensions between the US and several of its trading partners, may be mitigated by the region’s low unemployment and generally sound economic backdrop.
Latin American airlines saw traffic rise 4.3% compared to February 2018, a slippage from 5.4% annual growth in January. Capacity increased by 5.6%, and load factor dropped 1.0 percentage point to 81.4%. Renewed economic and political uncertainties in a number of key countries may weigh upon air transport demand in coming months.
African airlines experienced a 2.5% rise in traffic for the month compared to the year-ago period, down from 5.1% growth in January. Concerns over conditions in the largest economies are contributing to the slowdown. Capacity rose 0.3%, and load factor climbed 1.5 percentage points to 69.7%.

Domestic Passenger Markets

Domestic travel demand rose 6.4% in February compared to February 2018, down from 7.4% annual growth in January. All markets except Australia reported increases in traffic, with India recording its 54th consecutive month of double-digit percentage growth. Domestic capacity climbed 5.8%, and load factor edged up 0.5 percentage point to 82.4%.

February 2019 (% year-on-year)	World share¹	RPK	ASK	PLF (%-pt)²	PLF (level)³
Domestic	36.1%	6.4%	5.8%	0.5%	82.4%
Australia	0.9%	-1.7%	-1.6%	-0.1%	78.0%
Brazil	1.1%	5.8%	3.1%	2.1%	82.5%
China P.R	9.5%	11.4%	8.9%	1.9%	86.9%
India	1.6%	10.0%	12.3%	-1.9%	89.1%
Japan	1.0%	2.5%	2.9%	-0.2%	70.9%
Russian Fed.	1.4%	10.1%	11.8%	-1.1%	76.9%
US	14.1%	4.5%	4.8%	-0.2%	81.7%

China topped the growth chart for a second month in a row, with RPKs up a strong 11.4% year-on-year, although this was down from 14.5% growth in January compared to a year ago.
Brazil’s domestic traffic increased 5.8% in February, compared to a year ago, the fastest pace in more than six months and more than double the 2.6% year-over-year rise for January. Brazil was the only domestic market tracked by IATA to show an increase in the year-on-year growth rate compared to January 2019.

The Bottom Line

“While overall economic confidence appears to be softening, aviation continues to deliver solid results, helping to sustain global commerce and the movement of people. The Brexit deadline has come and gone with no separation agreement, but with vital air connectivity between the UK and the Continent maintained for the present. Temporary measures, however, are no substitute for a comprehensive Brexit package that will ensure that the Business of Freedom is able to play its vital role in contributing to the well-being of the region—and the world,” said de Juniac.

Read the full February Passenger Traffic Analysis (pdf)

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Air freight demand still spiraling down

April 3, 2019 by Forimmediaterelease

For the fourth consecutive month, global air freight performance has reported a negative year-on-year growth and the worst performance in the last three years. The International Air Transport Association (IATA) released data for global air freight markets showing that demand, measured in freight ton kilometers (FTKs), decreased 4.7% in February 2019, compared to the same period in 2018.

Freight capacity, measured in available freight ton kilometers (AFTKs), rose by 2.7% year-on-year in February 2019. This was the twelfth month in a row that capacity growth outstripped demand growth.

Demand for air cargo continues to face significant headwinds:

Trade tensions weigh on the industry;
Global economic activity and consumer confidence have weakened;
And the Purchasing Managers Index (PMI) for manufacturing and export orders has indicated falling global export orders since September 2018.

“Cargo is in the doldrums with smaller volumes being shipped over the last four months than a year ago. And with order books weakening, consumer confidence deteriorating and trade tensions hanging over the industry, it is difficult to see an early turnaround. The industry is adapting to new markets for e-commerce and special cargo shipments. But the bigger challenge is trade is slowing. Governments need to realize the damage being done by protectionist measures. Nobody wins a trade war. We all do better when borders are open to people and to trade,” said Alexandre de Juniac, IATA’s Director General and CEO.

Regional Performance

All regions reported a contraction in year-on-year demand growth in February 2019 except for Latin America.

Asia-Pacific airlines saw demand for air freight contract by 11.6% in February 2019, compared to the same period in 2018. Weaker manufacturing conditions for exporters in the region, ongoing trade tensions and a slowing of the Chinese economy impacted the market. Capacity decreased by 3.7%.

North American airlines saw demand contract by 0.7% in February 2019, compared to the same period a year earlier. This was the first month of negative year-on-year growth recorded since mid-2016, reflecting the sharp fall in trade with China. North American carriers have benefited from the strength of the US economy and consumer spending over the past year. Capacity increased by 7.1%.

European airlines experienced a contraction in freight demand of 1.0% in February 2019 compared to a year ago. The decline is consistent with weaker manufacturing conditions for exporters in Germany, one of Europe’s major economies. Trade tensions and uncertainty over Brexit also contributed to a weakening in demand. Capacity increased by 4.0% year-on-year.

Middle Eastern airlines’ freight volumes contracted 1.6% in February 2019 compared to the year-ago period. Capacity increased by 3.1%. A clear downward trend in seasonally-adjusted international air cargo demand is now evident with weakening trade to/from North America contributing to the decrease.

Latin American airlines posted the fastest growth of any region in February 2019 versus last year with demand up 2.8%. Despite the economic uncertainty in the region, a number of key markets are performing strongly. Seasonally-adjusted international freight demand achieved growth for the first time in six months. Capacity increased by 14.1%.

African carriers saw freight demand decrease by 8.5% in February 2019, compared to the same month in 2018. Seasonally-adjusted international freight volumes are lower than their peak in mid-2017; despite this, they are still 25% higher than their most recent trough in late-2015. Capacity grew 6.8% year-on-year.

View full February freight results (pdf).

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IATA announces judges for Diversity and Inclusion Awards

March 29, 2019 by Forimmediaterelease

The International Air Transport Association (IATA) announced the members of the independent judging panel for the IATA Diversity and Inclusion Awards as:

Angela Gittens, Director General, Airports Council International
Gloria Guevara, President and CEO, World Travel and Tourism Council
Mark Pilling, Vice President Publishing and Conferences, FlightGlobal
Karen Walker, Editor-in-Chief, Air Transport World

“We are honored to have such a renowned and diverse panel of experts as judges for the IATA Diversity and Inclusion Awards. Our aim is to inspire greater diversity and inclusion across the aviation industry by recognizing role models and company initiatives that are driving critical change,” said Alexandre de Juniac, IATA’s Director General and CEO.

IATA also announced the following important changes for nominations:

Eligibility: The Young High Flyer Award will be extended to nominations for women under the age of 40 (previously 30). This is to better accommodate the contributions made as nominees develop their careers and networks within the industry.
Deadline: The deadline for all nominations will be extended to 6 PM Central European Time, Monday, April 15. This will ensure ample time for any new nominations as a result of the category criteria adjustments.

Sponsored by Qatar Airways, the IATA Diversity and Inclusion Awards will honor excellence demonstrated in the categories of: (1) Inspirational Role Model, (2) Young High Flyer and (3) Diversity and Inclusion Team. The first awards will be presented at the conclusion of the 75th IATA Annual General Meeting and World Air Transport Summit to be held in Seoul, South Korea (1-3 June 2019).

For more information on the Awards visit the webpage.

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IATA Launches CEIV Fresh

March 12, 2019 by forimmediaterelease.net -

International Air Transport Association (IATA)

The International Air Transport Association (IATA) has launched a new industry certification—the Center for Excellence for Perishable Logistics (CEIV Fresh)—to improve the handling and the transport by air of perishable products.

“Perishable goods is a growing market for air cargo. Ensuring that these delicate and short shelf-life products reach the customer unspoiled with minimal waste and loss is essential. Shippers will have assurance that CEIV Fresh certified companies are operating to the highest quality and standards in the transport of perishable products,” said Alexandre de Juniac, IATA’s Director General and CEO.

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The specific time and temperature requirements for food and plant products makes the handling and transporting of perishable products challenging. The CEIV Fresh program meets these exacting requirements primarily based on the IATA Perishable Cargo Regulations (PCR) which combines professional regulatory and operational input from industry and government experts.

CEIV Fresh Launch Partners

The Airport Authority Hong Kong (AAHK), Cathay Pacific, Cathay Pacific Services Limited (CPSL) and Hong Kong Air Cargo Terminals Limited (HACTL) were the first organizations to pilot the CEIV Fresh program taking a community approach to certification. This unique community approach helps align the needs and responsibilities of all stakeholders involved in the handling of perishable goods.

“We took a community approach to developing CEIV Fresh recognizing that the successful shipment requires the alignment of many stakeholders. Shippers can have peace of mind knowing that every entity handling their goods is operating to the same standards. Understanding the value of this to the success of its customers, the Airport Authority Hong Kong pioneered the world’s first CEIV Fresh certified airport community,” said Glyn Hughes, IATA Global Head of Cargo.

“We are delighted to be the first airport community worldwide recognised by IATA under the CEIV Fresh programme, which is a big encouragement to and affirmation of the capability of the Hong Kong airport community in handling perishable products. HKIA is the world’s busiest cargo airport since 2010. With the new certification, HKIA is well-placed to capture the increasing growth opportunities in the market for fresh and perishable goods,” said Fred Lam, Chief Executive Officer, Airport Authority Hong Kong.he International Air Transport Association (IATA) has launched a new industry certification—the Center for Excellence for Perishable Logistics (CEIV Fresh)—to improve the handling and the transport by air of perishable products.

CEIV Fresh Launch Partners