‘Increased cargo volumes signal start of recovery’

Yields for cargo are expected to fall by at least 15% in the coming months, the International Air Transport Association (Iata) said last week. Forecasting deeper losses for the industry, Iata said cargo utilisation remained at less than 50% despite the removal of 227 freighters from the global fleet. “There is little hope for an early recovery in yields in either the passenger or cargo markets,” said Giovanni Bisignani, Iata’s director general and CEO. In a teleconference from Washington, Bisignani said the industry remained at risk despite cargo figures improving slightly compared to passenger traffic. “The only positive number for us is that of freight. Cargo is flying again which means that recovery is taking place.” He said that the first impact of stabilising economies was seen in airfreight volumes, which were flat during the first quarter of 2009, but started to rise in the second quarter. “July airfreight tonne kilometers flown were around 10% up on the December low point, although still well below year earliest levels.” Bisignani said leading indicators such as the Purchasing Managers’ Survey pointed to further improvements as the inventory cycle turned positive. “However, with consumer spending and investment still weak the foundations for this upturn remain fragile. Moreover, airfreight is being carried at lower and lower yields, which were down over 20% in the second quarter,” he said. “There remains a lost of pressure on yields which will slow any revenue upturn.”