Passenger Demand Strengthens - Freight at a Turning Point?

Geneva - The International Air Transport Association announced international traffic results for October showing a 10.1% year-on-year increase in passenger demand and a 14.4% year-on-year increase for international freight.

“As we approach the end of 2010, growth is returning to a more normal pattern. Passenger demand is 5% above pre-crisis levels of early 2008, while freight is 1% above. Where we go from here is dependant on developments in the global economy. The US is spending more to boost its economy. Asia outside of Japan is barrelling forward with high-speed growth. And Europe is tightening its belt as its currency crisis continues. The picture going forward is anything but clear, but for the time being, the recovery seems to be strengthening,” said Giovanni Bisignani, IATA’s Director General and CEO.

Freight appears to be at a turning point. Since May, freight volumes have declined by 5%. October saw an end to the decline in freight with a slight uptick. “But a single month does not make a trend. And it remains to be seen if this is the stabilization in freight volumes or the start of an upward trend,” said Bisignani.

Improvements in demand are being met by a cautious approach to capacity expansion. Over the first 10 months of the year, passenger demand grew by 8.5%, with a capacity expansion of 4.0%. A cargo capacity expansion of 9.2% was well below the demand increase of 24%. Forward schedules indicate a continuation of this trend, with a 7.5% passenger capacity increase

Source from: http://www.iata.org/pressroom/pr/Pages/2010-11-25-01.aspx