Weaker demand from critical sectors inhibits airfreight growth

INTERNATIONAL AIRFREIGHT traffic increased by a mere 3.2% in 2005 in contrast to passenger growth of 7.6%, the International Air Transport Association (IATA) revealed last week. “The industry is returning to a more normal growth pattern after the shocks that began in 2001. Passenger traffic is lower than the 15.3% increase recorded in 2004, but above the historical growth of 6%. Airfreight, however, is disappointingly low as a result of weaker demand from critical sectors such as IT and semi-conductors,” said Giovanni Bisignani, IATA’s director general and CEO. December freight traffic showed signs of emerging from its year-long slump. It rose by 5.5% over the same period the previous year bolstered by improved demand in key Asian and North American markets. December passenger traffic grew by 6.1%. Despite this growth, the industry lost US$ 6 billion (R36 bn) in 2005. “Growth and profitability are completely different concepts. Freight and passenger traffic are forecast to grow in the 5 to 6% range during 2006 but the industry is projected to record another loss of over US$4 billion (R24bn) for 2006,” said Bisignani. “The industry will not see black ink until at least 2007.“