The International Air Transport Association (IATA) has recently released traffic results for July 2007. Freight demand continued its recent rebound with 5.5% demand growth in July, up from 4.9% growth in June, and well above the 2.7% growth seen for the first half of 2007. Year to date freight demand has risen 3.8%.

Middle East carriers led demand growth in freight with 11.1% although total capacity (ATKs) grew by 16.5%. Airlines in Asia Pacific boosted global totals with above average freight demand growth of 8.2% in July, reflecting strong levels of economic and trade growth in the region.

Europe saw growth of 4.8% compared with just a 3.1% growth in capacity, pointing towards a hardening of rates. Latin America showed the worst performance, with a fall of 5.3% year-on-year, although capacity jumped by 9.5%.

Giovanni Bisignani, Director General and CEO of IATA commented on the figures, saying. "… there are risks. If the volatility in global stock markets begins to affect the wider economy, the spin-off effect could put a drag on demand. Airlines will have to maintain a prudent approach to adding new capacity."