Double-dip air cargo recession “unlikely”

FIGURES suggest a double-dip recession in air cargo is now unlikely, report IATA. Writing in its Cargo e-Chartbook Q3 2010 the aviation organisation said that while there are still uncertainties about the general global economic outlook, current conditions in cargo markets remain positive.

“Airfreight has entered a slower phase of expansion but the pace of growth in both volumes and yields remains above trend. Revenues have been growing strongly and, in many regions, cargo profitability is back to pre-recession levels. The environment will get more difficult. Even without a ‘double dip’, demand will slow and new capacity will put pressure on load factors and yields,” IATA said.

It added that economic growth by region is likely to continue to be very unbalanced, blaming loose monetary policy remains in Europe and the US, with emerging economies’ economic outlook remaining positive.