Airfreight growth falls below historic average

GROWTH IN airfreight and passenger traffic has slowed down, according to figures released by the International Air Transport Association (IATA). International freight traffic rose 4.9%, up from 4.7% in August but below the historic long-term average growth of 6.0%. For the year to date, freight demand has grown 5.2% over the same period in 2005. “Slowing traffic growth is starting to weaken the strong revenue environment, but efficiency gains and careful capacity management continue,” said IATA director general and CEO, Giovanni Bisignani. “The recent fall in spot prices for oil has provided a boost, though prices for forward purchase remain close to US$70 per barrel,” he said. Bisignani expects that the industry will improve the bottom line to a loss of US$1.7 billion for this year.