CARGO heads expect freight yields to decline over the next 12 months and traffic to increase only modestly, says IATA.
The association reveals cargo profitability has come under downward pressure in the third quarter of 2012, with the minor improvement in airfreight demand in the first six months stalling, yields declining and oil prices rising again.
Although IATA notes continued expansion in world trade has helped airfreight markets stabilise, it states: “The growth momentum in trade volumes is slowing and business confidence has reversed the upward trend seen earlier this year, declining for the last three months.
“Demand drivers have also weakened with consumer confidence falling in China, the US and particularly in Europe and with capital investment intentions by Japanese and UK companies declining.”
The body also observed aircraft utilisation had diminished.