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IATA: Air freight growing below trend

IATA: Air freight growing below trend

   Geneva-based International Air Transport Association said that international air freight traffic in September and the first nine months of 2006 grew below the historic long-term average of 6 percent, at 4.9 percent and 5.2 percent respectively.

   'Slowing traffic growth is starting to weaken the strong revenue environment, but efficiency gains and careful capacity management continue,' said Giovanni Bisignani, IATA's director general and chief executive officer.

   'The recent fall in spot prices for oil has provided a boost, though prices for forward purchase remain close to $70 per barrel. The net result for the industry is more profitable growth, and we are confident that the industry will improve the bottom line to a loss of $1.7 billion for this year,' he said.

   For the month of September, Middle Eastern carriers lead the growth with a 13.9 percent year-on-year increase in freight-ton kilometers, followed by Africa and Asia Pacific, both at 5.8 percent, then Latin America (2.9 percent), Europe (2.6 percent), and North America (2.5 percent).

   IATA represents more than 260 airlines comprising 94 percent of international scheduled air traffic.