According to latest figures released by the International Air Transportation Association, there has been a sharp decline in air freight and passenger traffic during August. The drop is probably accounted for by a slump in global business and consumer confidence.
Tony Tyler, head of the IATA, said “the industry has shifted gears downward,” and the figures bear him out. Though passenger demand rose 4.5% compared to a year ago, it was much lower than the 6% noted in the previous month of July. Freight was worse, falling 3.8% in August versus a fall of 1.8% in July.
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The data will affect these airline stocks: JetBlue (NASDAQ:JBLU), Alaska Air Group (NYSE:ALK), United Continental Holdings (NYSE:UAL), Southwest (NYSE:LUV), Delta (NYSE:DAL), AMR Corp. (NYSE:AMR), US Airways (NYSE:LCC), Hawaiian Holdings (NASDAQ:HA).
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