The International Air Transport Association (IATA) says the recovery has entered a second slower phase.
Releasing traffic statistics for July, which showed continued strengthening of demand for both passenger and cargo traffic, the organisation says the recovery in demand has been faster than anticipated. "But as we look towards the end of the year, the pace of the recovery will likely slow," comments Giovanni Bisignani, IATA's Director General and CEO.
Bisignani says the jobless economic recovery is keeping consumer confidence fragile, particularly in North America and Europe. "This is affecting leisure markets and cargo traffic. Following the boost of cargo demand from inventory re-stocking, further growth will be largely determined by consumer spending which remains weak," he adds.
According to him, demand was rebounding at an annualized rate of 12% for passenger and 28% for cargo during the second half of 2009. In the first half of this year, the annualized growth rates had dropped to 8% for passenger and 17% for air freight. "However, this is still considerably above the industry's traditional 6% growth trend," he comments.