EUROPE/CIS: Industry recovery ‘shifting gears’says IATA

Figures from the International Air Transport Association (IATA), show global air freight volumes in November growing by 5.4 per cent, year-on-year, but this is much lower than the 14.5 per cent growth recorded in October. IATA attributed this to improved volumes in November 2009 when the industry was beginning its rapid recovery, rather than a […]


Figures from the International Air Transport Association (IATA), show global air freight volumes in November growing by 5.4 per cent, year-on-year, but this is much lower than the 14.5 per cent growth recorded in October. IATA attributed this to improved volumes in November 2009 when the industry was beginning its rapid recovery, rather than a sudden drop in 2010. “The slowdown in 2010 is partially skewed because of the exceptionally rapid rise in traffic volumes recorded during the fourth quarter of 2009. However, when viewed in absolute terms, air travel fell by 0.8 per cent and airfreight fell by 1.1 per cent between October and November 2010,” IATA said. DG and CEO Giovanni Bisignani added: “The industry is shifting gears in the recovery cycle. Growth is slowing towards normal historical levels in the 5-6 per cent range. Relative weakness in developed markets is being offset by the momentum of economic expansion in developing markets. We see a strong end to 2010 that boosted the year’s profit forecast to US$15.1 billion.” “Slowing traffic growth is in line with our projections for a reduced profit of $9.1 billion in 2011,” producing only a 1.5 per cent margin. “More hard work will be needed in this new year to achieve sustainable levels of profitability, Bisignani added. Iata said all regions except Africa had shown dramatic falls in year-on-year growth rates from October to November. Asia-Pacific carriers saw a 4.1 per cent year-on-year increase in volumes in November, but they had moved similar volumes of freight as they did in the prerecession peak of early 2008. Middle Eastern carriers saw 12.4 per cent year-on-year growth for November with 4 per cent more volumes than they handled during the pre-recession peak. North American carriers showed 1.5 per cent year-on-year growth in November, but overall volumes remained 7 per cent below the pre-recession levels of early 2008. European carriers experienced 6.6 per cent year-on-year growth in November, with their overall volumes remaining 12 per cent below pre-recession levels.