IATA: Worse air cargo year in history ends with December advance

GLOBAL air cargo soared nearly 25 per cent in December, bringing an end to aviation's worst year in history, reported the International Air Transport Association (IATA).

The worst is over said Geneva-based IATA, but the sector still faced a hard year making up for the lost demand and now faced mounting costs from unfunded mandates to meet new security regulations.

"The industry starts 2010 with enormous challenges. The worst is behind us, but it is no time to celebrate," said IATA director-general and CEO Giovanni Bisignani.

Airlines must now focus on matching capacity to demand and controlling costs, he said.

Air cargo traffic in December was 24.4 per cent higher than a year earlier. Its load factor was 54.1. As a whole, 2009 freight demand dropped 10.1 per cent for a load factor of 49.1.

He said the 2009 December upturn was exaggerated because it was only compared to the weak December of 2008. Freight demand is still nine per cent lower than the peak in early 2008.

But optimism is returning to the industry as purchasing managers survey indicators reached a 44-month high in December pointing towards increased freight volumes in the coming months, said the IATA statement.

Asia-Pacific carriers accounted for more than 60 per cent of the increase in international air freight markets over the past 12 months, outperforming their 45 per cent market share. Despite this improvement, Asia-Pacific carriers' freight volumes remain eight per cent below peak levels.

European carriers remain 20 per cent below 2008 peak levels reflecting the glacial pace of economic recovery in Europe compared to Asia-Pacific.

Middle East carriers and Latin American carriers are smaller market participants, but ended the year better than peak levels by seven per cent and 21 per cent respectively.

(Source: www.schednet.com)