Air cargo outlook ‘grim at best’

INTERNATIONAL CARGO growth remained sluggish at 3.7% in April, according to the latest International Air Transport Association (Iata) traffic data released last week. This figure was weaker than the 4.4% average increase recorded during the first quarter reflecting the impact of the economic slowdown. The EU-US Open Skies agreement provided a modest boost to US airlines which recorded 6% growth in April due to extra transatlantic capacity. Middle Eastern airlines recorded a 15.8% increase in the same monthdue to additional capacity and strong trade in the markets they serve. “Combine slowing growth with skyrocketing oil prices and the industry outlook is grim at best,” said Iata director general and CEO Giovanni Bisignani as the world’s aviation leaders gathered in Istanbul, Turkey for the Iata Annual General Meeting and World Air Transport Summit. “In 2007 airlines posted a profit of US$5.6 billion. This was the first profit after six years in which losses totalled more than US$40 billion. To achieve this, we re-engineered the industry,” said Bisignani. “But there will barely be time to celebrate. Much more change is needed,” he said. “The Iata Annual General Meeting and World Air Transport Summit is the biggest airline event of the year. Over 700 top industry leaders were expected to attend the event this week (June 1-3).