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Airfreight demand growth sluggish while sea cargo booms: IATA
POSTED: 8:53 a.m. EDT, June 4,2007
The International Air Transport Association (IATA) says airfreight demand growth slowed to 2.6 per cent in the first four months of the year over the same period in 2006.
Average load factors stood at 75.4 per cent. "Freight is more price sensitive than before. Competition with other modes of transport is severe, and sea shipping is taking a greater proportion," said IATA director general Giovanni Bisignani.
Strong economic growth, route expansion and an increase in perishable goods shipments helped Middle Eastern airlines record 12.2 per cent demand growth followed by Asia Pacific at 3.9 per cent while European demand fell to -0.1 per cent and North America was flat at 0.9 per cent demand growth and Latin America dropped -5.5 per cent.
Passenger demand grew by 6.7 per cent year on year. "The story for the first four months of the year is stability. For passenger traffic, demand is better, supported by a relatively strong global economy," said Mr Bisignani.
Mr Bisignani said there is lots of good news in the industry, noting that airlines are emerging into profitability after six years and US$42 billion in losses. Liberalised agreements between the US and Europe and the US and China are opening up important markets. He also believes that new aircraft on the horizon will create new fuel-efficient opportunities for both hub and point-to-point traffic.
The IATA annual general meeting and the World Air Transport Summit, which is expected to draw international aviation experts, is being held in Vancouver, Canada this week from June 3-5. |
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