Thursday January 31, 11:40 AM
World airline industry faces tough 2008, says IATA
GENEVA (AFP) - Global air traffic which sparkled last year is set to slow in 2008 amid rising prices and economic uncertainty after a sharp decline in December, the International Air Transport Association (IATA) said on Thursday.
December passenger traffic demand rose by 6.7 percent, down from 9.3 percent in November (Frankfurt: A0S9N7 - news) , IATA said in a statement.
"The slower growth for passenger demand in December sets the trend for the coming months," IATA chief executive officer Giovanni Bisignani said.
"Oil prices are higher than ever. Economic uncertainty accompanying the US credit crunch is broadening," he added.
IATA expects passenger demand growth at 5 percent in 2008, down from 7.4 percent in 2007.
The year just ended was "the best in recent memory," Bisignani said.
"Strong passenger growth of 7.4 percent was a key component of the industry's 5.6 billion dollar profit in 2007 -- the first black number since 2000," he said.
Average international passenger load factors reached an industry record of 77 percent in 2007, up from 76 percent in 2006.
Middle Eastern carriers registered the strongest growth in 2007 with passenger demand up 18.1 percent, reflecting strong regional economies, the impact of oil wealth, expanded capacity and new routes, IATA said.
Asia Pacific carriers saw 7.3 percent growth, showing the "continuing strength of the Chinese and Indian economoc expansion," it added.
International freight traffic grew 4.3 percent in 2007, down from 4.6 percent the previous year.
The air freight demand environment will remain "challenging," with overall growth of 4-4.5 percent projected for 2008, IATA said.
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