IATA Report Shows Good Numbers Thanks to Strong Passenger, Cargo Demand

The International Air Transport Association (IATA) released international traffic data for May 2006 showing 7 percent growth in passenger demand and 5.1 percent growth for freight over the same period in 2005. Load factor for May achieved an average of 73.6 percent.

“Strong economies are supporting strong demand growth for both freight and passenger traffic. This positive demand environment is helping the global airline industry to offset some of the sharp increase in jet fuel prices. And it is helping airlines boost revenues by an average of 10 percent over the past three years,” said Giovanni Bisignani, IATA´s Director General and CEO.

International passenger traffic grew 7 percent year on year, in May, down from the 9.9 percent growth in April when traffic was artificially boosted by the “Easter effect.”

However, the 7 percent growth represents a pick-up in the underlying growth rate, helping to boost growth in the year to date to an above average 6.8 percent.

Airlines are also benefiting from improved capacity utilization. Capacity expanded by only 4.9 percent, driving load factors to 73.6 percent, which is 1.4 percent higher than in May 2005.

For the first five months of the year, the Middle East continued to lead growth with a 17.8 percent increase over the same period in 2005.

International freight traffic grew 5.1 percent year on year, in May, down from the 6.1 percent seen in April. A fall in freight traffic in Latin America –largely due to the problems and lower volumes at Brazilian carrier Varig- was the main factor behind the slowdown in the overall growth rate.

Excluding Varig, other Latin American airlines were on track with 5 percent growth in May, similar to the global average. Overall, freight traffic remains on course to grow by at least double the 2005 rate, and we forecast growth of 7 percent for 2006 as a whole.