International air cargo showed a slight improvement in October volumes from its September levelon a seasonally adjusted basis even though the 14.4% year-on-year increase in freight traffic for
October was marginally weaker than the 15.5% recorded in September, according to figures publishedby the International Air Transport Association (IATA) today.“As we approach the end of 2010, growth is returning to a more normal pattern. Passenger demandis 5% above pre-crisis levels of early 2008, while freight is 1% above. Where we go from here isdependent on developments in the global economy. The US is spending more to boost its economy. Asiaoutside of Japan is barrelling forward with high-speed growth. And Europe is tightening its belt asits currency crisis continues. The picture going forward is anything but clear, but for the timebeing, the recovery seems to be strengthening,” said Giovanni Bisignani, IATA’s Director Generaland 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 makea trend. And it remains to be seen if this is the stabilisation in freight volumes or the start ofan upward trend,” Bisignani explained.
IATA said improvements in demand are being met by a cautious approach to capacity expansion. Acargo capacity expansion of 9.2% was well below the demand increase of 24%.
In regional terms, Asia Pacific carriers recorded a 14.9% increase in international freightdemand, down from the 16.2% recorded in September. IATA said October’s growth translates to animpressive 22% annualised growth rate for the region’s carriers, reflecting the strong economicrecovery particularly in China and India. “With a 44% share of total freight traffic, the growthexperienced by Asia-Pacific airlines played a large role in the uptick seen in overall industryfreight volumes during October.”
European carriers recorded a12.1% year-on-year demand increase in October which is a slightimprovement compared to the previous month. North American carriers saw a slightly largerimprovement of 12.2%. For both regions, October freight volumes represented a 6% improvement onfreight volumes carried in December 2009. Relative weakness in the Euro and dollar is helpingexport activity and boosting freight traffic, IATA explained. “Even so, traffic remains 12% belowpre-recession levels of early 2008 for European airlines and just 2% higher in North America.”
Like in September, the Middle East showed the strongest growth in October compared to the otherregions with a 22.7% increase in freight demand.
The IATA chief also reiterated his call for better air traffic management in Europe to help makethe aviation sector more efficient. “We have been waiting decades for the efficiency of a SingleEuropean Sky. Average air traffic management costs per flight in Europe are €771, compared to €440in the USA. This is a €5 billion competitive disadvantage for Europe that affects everybody thatflies or ships goods by air. Reluctance to change continues to put the programme at risk. It isextremely disappointing to see some European state governments refusing to implement the 4.5% costreduction target for 2012-14 agreed by the independent Performance Review Board,” Bisignanistated.
“This is no hardship. With inflation expected to be 1.6-2.0% and with traffic growth of 3.2%,this is achievable simply by containing costs. If Europe’s air traffic management community cannotsee the need for change, I hope that Europe’s Transport Ministers will. I urge them to support theEuropean Commission in building a more competitive Europe, driven by serious performance targetsand with a modern cost-efficient approach to air traffic management that is the Single EuropeanSky,” he concluded.
