Air freight may have found floor: IATA

Global - The latest data from the International Air Transport Association (IATA) suggests that air freight could have hit bottom, although a recovery is still far from sight.

According to the IATA, air cargo demand tumbled 21.7% in April, the fifth consecutive month that air freight has witnessed a decline in excess of 20%, although the pace of decline held steady, indicating that the industry could have hit bottom.

"Freight remains at shockingly low levels. The worst may be over. However, we have not yet seen any signs that recovery is imminent," Giovanni Bisignani, director general and CEO of IATA said.

Carriers reported double digit declines globally. The strongest performers - Middle Eastern carriers witnessed declines of 11.1%. European, North American, Asia-Pacific and African carriers declines by 23.3%, 22.4%, 22.3% and 18.8% respectively, while Latin American carriers performed the worst at -24.2%, IATA said.

"This sideways progression may indicate that we have seen the worst of the economic downturn. Business confidence is improving, but inventories remain high. Until inventories adjust to more normal levels, air freight volumes will likely continue to bounce along the bottom," said Bisignani.

Previously, IATA forecast that the global air transport industry could lose approximately US$4.7 billion this year as a result of the global recession that has shrunk passenger and cargo demand.

"Much of the cost base remains out of our control - from volatile fuel prices to monopoly infrastructure charges and many governments simply don't understand the need for urgent change. We need a change in mindset. To manage through this ongoing crisis, every player in the air transport value chain must be prepared to drive change," Bisignani said.