Full-year traffic results for 2006 released by The International Air Transport Association (IATA) show slower, but more profitable growth.

The growth rate for cargo increased from 3.2 percent in 2005 to 4.6 percent in 2006, but remains below the historical growth trend of 5.6 percent. The Middle East was the fastest growing region for cargo recording full-year growth of 16.1 percent respectively.

Despite an improved cargo growth rate, the key markets of Europe and Asia were relatively muted with 1.7 percent and 4.7 percent growth rates respectively. High fuel costs and strong competition from other transport modes (particularly in Europe) constrained growth in 2006, according to an IATA press release. North America was the most improved market as freight growth increased from 0.4 percent to 6.0 percent as airlines switched capacity towards cargo.

“The focus for 2007 is efficiency,” said Giovanni Bisignani, IATA’s Director General and CEO. “Slower traffic growth rates and a less buoyant global economy will impact revenue growth. Industry-wide we expect revenue growth to slow from 8.0 percent in 2006 to 4.5 percent in 2007. While lower oil prices are a welcome relief, they remain around US$60/barrel—more than double the price in 2000. Bottom line improvement depends on achieving further efficiencies across the board. Airlines have reduced non-fuel unit costs by an average of 3.5 percent over the last five years. It is time for our industry partners across the value chain—including airports and air navigation service providers—to deliver similar results.”