World air cargo volumes grow 21pc in 2010

THE International Air Transport Association (IATA) reports that international airfreight volumes rose by 20.6 per cent in 2010 with demand outstripping a capacity increase of 8.9 per cent. The freight load factor saw a 5.2 percentage point improvement to 53.8 per cent.


International passenger traffic grew by 8.2 per cent last year on a capacity increase of 4.4 per cent. The average passenger load factor for the year was 78.4 per cent, a 2.7 percentage point improvement on 2009.


IATA said air freight volume was one per cent higher than pre-recession levels of early 2008; however, volumes have fallen five per cent since the peak of the post-recession, inventory re-stocking boom in early 2010.


"Airlines ended the year slightly ahead of early 2008 volumes, but with a pathetic 2.7 per cent profit margin. The challenge is to turn the demand for mobility into sustainable profits," said Giovanni Bisignani, IATA's director general and CEO, in a statement.


Severe weather in Europe and North America in December 2010 was said to have put a dent in the industry's recovery. It is estimated that this shaved one per cent off of total traffic demand for the month. As a result passenger demand dipped to 4.9 per cent growth on December 2009 levels, significantly lower than the 8.2 per cent growth recorded in November. Hardest hit was Europe, which saw December growth slow to 3.3 per cent.


IATA said international airfreight demand growth "varied wildly" over the year from a high of 35.2 per cent in May to a low of 5.8 per cent in November. "Overall the industry is trending towards normal growth pattern in line with the historical growth rate of five to six per cent," it said.


Latin American carriers recorded the highest full-year, airfreight volume growth rate of 29.1 per cent, followed by Middle East carriers at 26.7 per cent. Asia Pacific airlines saw airfreight volumes increase by 24.0 per cent, Africa by 23.8 per cent, North America by 21.8 per cent, and Europe by 10.8 per cent.


Looking ahead Mr Bisignani said: "We predicted that 2011 would see a consecutive second year of profitability but with industry profits falling by 40 per cent to $9.1 billion. This was based on an oil price of $84 per barrel (Brent). Fuel accounts for 27 per cent of operating costs and a sustained rise in the oil price could spoil the party."
(Source:http://www.schednet.com)