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International freight vol stops its decline in Oct

International air passenger traffic showed a 10.1% year-on-year increase during October, according to a report citing the International Air Transport Association (IATA).

International freight traffic rose 14.4%. Middle East carriers recorded the strongest growth for the month with an 18% increase in demand. The region also had the largest capacity expansion at 13.7 % compared to October 2009.

“As we approach the end of 2010, growth is returning to a more normal pattern. Passenger demand is 5% above pre-crisis levels of early 2008, while freight is 1% above. Where we go from here is dependant on developments in the global economy," IATA said.

The US is spending more to boost its economy. Asia outside of Japan is barrelling forward with high-speed growth. And Europe is tightening its belt as its currency crisis continues. The picture going forward is anything but clear, but for the time being, the recovery seems to be strengthening, said Giovanni Bisignani, IATA’s director general and CEO.

Other key findings from IATA are:  Freight appears to be at a turning point. Since May, freight volumes have declined by 5%. October saw an end to the decline in freight with a slight uptick.  Capacity expansion remains cautious. Over the first 10 months of the year, passenger demand grew by 8.5%, with a capacity expansion of 4%.  Cargo capacity expansion at 9.2 % is well below the demand increase of 24%.

According to IATA, the 10.1 % growth in passenger demand in October is slightly below the 10.7% recorded in September, but both months are an improvement over August. -Source: TradeArabia News Service