Passenger demand strengthens freight at a turning point

The International Air Transport Association announced international traffic results for October showing a 10.1% year-on-year increase in passenger demand and a 14.4% year-on-year increase for international freight.

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. Put a single month does not make a trend. And it remains to be seen if this is the stabilization in freight volumes or the start of an upward trend, said Giovanni Bisignani, IATA Director General and CEO.

Improvements in demand are being met by a cautious approach to capacity expansion. Over the first 10 months of the year, passenger demand grew by 8.5%, with a capacity expansion of 4.0%. A cargo capacity expansion of 9.2% was well below the demand increase of 24%. Forward schedules indicate a continuation of this trend, with a 7.5% passenger capacity increase planned for the half-year scheduling period beginning at the end of October.<Korea Shipping Gazette>