Air freight growth in 2006 below trend says IATA

Air freight growth in 2006 below trend says IATA Global air freight volume increased 4.6 percent in 2006, below the historical growth trend of 5.6 percent, according to statistics provided by the Geneva-based International Air Transport Association.
   The Middle East was the fastest growing region for both passenger and cargo, with cargo recording growth of 16.1 percent. IATA said that growth in Europe (up 1.7 percent) and Asia (up 4.7 percent) was restricted by high fuel costs and strong competition from other transport modes.
   North America was the most improved market as freight growth increased from 0.4 percent in 2006 to 6 percent last year “as airlines switched capacity towards cargo.”
   IATA said the industry showed an estimated operating profit of $10.2 billion for 2006 while net losses were reduced to a projected $500 million.
   “Cost reduction, improved efficiencies and careful capacity management have positioned the industry to achieve a projected net profit of $2.5 billion in 2007,” said Giovanni Bisignani, IATA’s director general and chief executive officer.
   “The focus for 2007 is efficiency. Slower traffic growth rates and a less buoyant global economy will impact revenue growth,” he said.
   “Industry-wide we expect revenue growth to slow from 8 percent in 2006 to 4.5 percent in 2007. While lower oil prices are a welcome relief, they remain around $60 per barrel — more than double the price in 2000. Bottom line improvement depends on achieving further efficiencies across the board.”