Thursday, January 31, 2013
Report: Air Cargo Declined, Passenger Demand Increased in 2012
Airline passenger traffic worldwide increased by 5.3 percent in 2012 compared to 2011, according to a report released by the International Air Transportation Association (IATA) Thursday.
IATA also reports the full-year traffic data for 2012 showed a decline of 1.5 percent for air cargo traffic compared to 2011. That marks the second consecutive year of a drop in international air cargo traffic, following a decline of 0.6 percent in 2011.
“Growth and high aircraft utilization combined to help airlines deliver an estimated $6.7 billion profit in 2012 despite high fuel prices. But with a net profit margin of just 1 percent the industry is only just keeping its head above water,” said Tony Tyler, CEO of IATA.
IATA said the strongest growth in international passenger traffic in 2012 came from emerging markets such as the Middle East which posted a 15.4 percent increase over 2011 and Latin America which posted an 8.4 percent increase.
Tyler said the drop in air cargo was due largely to a decline in world trade, and countries choosing to utilize sea shipping more for bulk commodities. The largest drop in air cargo traffic occurred in the Asia-Pacific region, which posted a 5.5 percent year-over-year decline.
“We are entering 2013 with some guarded optimism. Business confidence is up. The Eurozone situation is more stable than it was a year-ago and the US avoided the fiscal cliff. Significant headwinds remain. There is no end in sight for high fuel prices and GDP growth is projected at just 2.3%. But improved business confidence should help cargo markets to recover the lost ground from 2012,” said Tyler. More