IATA stats show passenger growth, but slow freight

IATA has released traffic results for July which showed that passenger travel was up 5.9 per cent over July 2010; but freight markets were stagnating with a 0.4 per cent demand decline over previous year levels.

“Passenger travel bucked the gloomy economic outlook with a 5.9% increase in July,” said new director general Tony Tyler.

“This increase was likely based on the much more optimistic economic outlook that marked the beginning of the year.

“With business and consumer confidence now tanking, sluggishness in international trade, and high fuel prices, the expectation is for a weaker end to the year.

“We are already seeing this in the shrinking air freight markets, which were 0.4% down on the previous year.”

IATA says that the numbers that the global financial crisis has cost airlines about two full years of growth.

In terms of international passenger traffic, Asia-Pacific carriers had a capacity increase of 5.8 per cent run ahead of demand growth of 4.9 per cent.

Airlines in the region are still adjusting to two major challenges: slower growth in China and continuing post-earthquake/tsunami weakness in Japan.

As a result load factors fell slightly to 80.2 per cent

When it came to freight, Asia-Pacific carriers continue to show the weakest freight performance with a 3.6 per cent decline compared to July 2010.

Middle East and Latin American carriers showed the strongest performance with gains of 8.4 per cent and 8.2 per cent respectively.

Summing up, IATA’s Tyler said that, “July is the peak in the annual cycle for passenger traffic. This year was no exception.

“But even if the industry’s performance could be classified as stronger than expected, we do face headwinds as we look towards the end of the year.

“Some of our challenges have a high percentage of government-made content.

“The recent downsizing of Air Berlin is a clear reminder of the high cost of the German departure tax on the economy, jobs and communities.

“Governments should not compromise aviation’s role as an economic catalyst for the short-term revenue gain of gratuitous taxation—particularly when economies remain weak.”