Passenger demand strong, cargo remains sluggish

RESULTS: The International Air Transport Association (IATA) released traffic results for the first four months of the year showing year-on-year international passenger demand growth of 6.7%, freight demand growth significantly slower at 2.6%, with average load factors for the period at 75.4%.

“While we saw slight changes in April, the story for the first four months of the year is stability. For passenger traffic, demand is better than expected, supported by a relatively strong global economy. Freight demand is showing much more price sensitivity than previously.

The cargo business is still growing, but competition with other modes of transport is severe. And sea shipping is taking a greater proportion of the benefits from the economic boom,” said Govanni Bisignani, IATA’s Director General and CEO.

Over the first four months of the year, the Middle East remained the fastest growing region recording a 17.6% year-on-year passenger demand increase. African airlines saw demand growth of 10.1% boosted by improved economic performance and growing links with Asia and the Middle East.

Asia Pacific and Europe grew relatively equally at 6.2% and 6.0%. North American carriers were slightly lower at 5.4% reflecting the weakening US economy. Latin America demand declined (-1.6%) due to industry restructuring.

For air freight, strong economic growth, route expansion and an increase in perishable goods shipments helped Middle Eastern airlines record 12.2% demand growth over the first four months of the year.

Asia Pacific at 3.9% was next in line. This is low when compared to the trade expansion in the region. Europe saw a slight contraction of -0.1%, North America was flat at 0.9% demand growth and Latin America demand dropped -5.5%.

“There is lots of good news in the industry. Airlines are emerging into profitability after six years and US$42 billion in losses. Air transport is safer than ever. Simplifying the Business is delivering real results.

“But we also face some big challenges. We cannot take our foot off the gas on the drive for efficiency-internally and with our infrastructure partners. Climate change needs a global solution for aviation,” said Bisignani.