World cargo’s summer sadness

JUNE has been no exception to the fact that international freight volumes have not grown since July-August 2010, coming in at three per cent lower year-on-year.

Slower economic growth and increased costs resulting from higher jet fuel prices, and increased taxation in some countries have endured since July-August 2010. World trade is expanding at seven per cent annually, but this is not transferring to air transport in particular.

“Compared to May [2011] both passenger and cargo markets contracted by about one per cent. For passenger traffic, this is a speed-bump in a gradual post recession improvement. But air cargo continues in the doldrums at six per cent below the post-recession peak [in May 2010],” Tony Tyler, IATA’s director general, said.

Asia Pacific carriers recorded the largest year-on-year decline at -5.8 per cent. European carriers posted a 1.3 per cent drop and North American carriers recorded a decline of three per cent compared to June 2010 levels.

Carriers in the Middle East, Latin America and Africa showed year-on-year growth for June, recording demand increases of 3.7 per cent, 2.8 per cent and 0.3 per cent respectively.

IATA is forecasting an industry profit of US$4 billion for 2011, which is a 78 per cent fall from the $18 billion that the airlines made in 2010.