'Signs of improvement’ – Iata CEO tells delegates at AGM in Cape Town

Some 700 aviation leaders have gathered in Cape Town for the International Air Transport Association (Iata) 69th Annual General Meeting (AGM) and World Air Transport Summit.
Speaking at the opening of the event at the Cape Town Convention Centre, Iata Director General and CEO, Tony Tyler, said it was only the third time the AGM had been held on African soil – the last in Nairobi in 1991 and before that in Cairo in 1946.
“We are coming to Africa at a time of enormous promise. Aviation is a catalyst for growth and development,” he said. “African aviation is at an inflection point. Although it is small by global standards, the potential is enormous, with a billion people spread across 20% of earth’s land mass. The African Union celebrated its first 50 years over the weekend. African unity and integration depends on connectivity. The AGM will be an important opportunity to reflect on the critical role that aviation plays on the African continent.”
With airlines generating some $670 billion in revenues and their activities the core of a value chain that supports some $2.2 trillion in economic activity and 57 million jobs, Tyler said he was positive about the industry that had suffered significantly following the global economic meltdown in 2008.
“We are seeing signs of improvement in the industry’s fortunes,” he said. “It is growing strongly on routes linked to emerging markets. We are seeing strong growth among African (4.6%), Asia-Pacific (4.7%), Middle Eastern (10%) and Latin American (2.8%) airlines. Growth is slower in Europe (2.2%) due to the ongoing crisis in Eurozone economies and in North America (0.6%) where the market is mature, carriers are tightly managing capacity and there are still questions about the strength of the economic recovery.”
Tyler warned that caution was necessary. “Global freight markets were up just 1.4% in April. That comes after a 2.6% contraction in March. Yes, that is good news, but if we look at the past 18 months, freight markets basically have been flat.”