[080213.EN.AIR] Global Increase In Air Cargo Brightens 2013 Demand Outlook, Says IATA

THE International Air Transport Association (IATA), the global airlines industry association, has reported 1.6 per cent improvement November air cargo demand worldwide year on year and 4.6 per cent more passengers travelled in the same period.

"It is premature to consider this a turning point for air cargo, but when coupled with positive economic developments in the US and an improvement in business confidence in recent months, the conditions are aligning to see a return to growth in 2013," said IATA director general Tony Tyler, former CEO of Hong Kong's Cathay Pacific Airways.

Asia-Pacific carriers, responsible for almost half the increase in total volumes compared to October, experienced a 6.2 per cent year-on-year rise in demand as they enlarged capacity 2.5 per cent. Thailand's 2011 floods and slump in air traffic helped make 2012 figures look better than they should, cautioned the IATA statement.

North American November freight volume was up 1.7 per cent, but Hurricane Sandy hit transatlantic routes badly. European airlines' year-on-year freight traffic was flat, and capacity grew just 0.3 per cent.

Mideast airlines' November demand was up 10.5 per cent compared to November 2011, and were just behind the top performing Latin American carriers with an 11 per cent year-on-year November growth rate.

Although the Latin American economy suffered from the Eurozone crisis and China's slower growth last year, strong domestic demand in several major economies has provided continued support to air travel, said IATA. Latin American airlines' freight grew 4.2 per cent year on year, but capacity grew at more than twice that at 8.5 per cent.

African airlines grew cargo demand 4.4 per cent in the same period. The load factor rose 0.4 percentage points to 64.7 per cent, but remains the lowest of any region. Compared to October, African traffic was up 0.1 per cent.

Mr Tyler also renewed his call on governments to bring down the barriers to connectivity growth. "This can be done by addressing excessive taxation, high infrastructure costs, onerous regulation and improving the capacity and efficiency of airports and air navigation services."

Source : HKSG.