CHINA: Asian growth help keep cargo growth up

Airlines should brace for turbulence in 2008 as the US slowdown will hit profits, despite robust cargo demand in emerging markets, the head of industry body IATAwarned. “Fasten your seatbelts. There is likely to be turbulence ahead,” said International Air Transport Association director general and CEOs, Giovanni Bisignani. IATA had earlier this month warned of […]


Airlines should brace for turbulence in 2008 as the US slowdown will hit profits, despite robust cargo demand in emerging markets, the head of industry body IATAwarned.

“Fasten your seatbelts. There is likely to be turbulence ahead,” said International Air Transport Association director general and CEOs, Giovanni Bisignani.

IATA had earlier this month warned of a slowing in growth in international air traffic to 5 per cent in 2008, down from 7.4per cent last year.

For the month of January IATA said global air passenger traffic growth slowed to 4.3 per cent from 6.7 per cent the previous month, while air freight grew 4.5 per cent,easing slightly from 4.7 per cent.

“January traffic results show that we could be at a turning point. A month’s data is not enough to define a trend. However, the sharp shift in demand growth patterns makes it clear that the US credit crunch is negatively impacting air travel,” Bisignani said in a statement.

Bisignani also warned industry profits would slide in 2008. “We are an industry out of intensive care but we are still sick,” Bisignani said of the air industry which continues to struggle with soaring fuelprices and over capacity.