IATA reports that rising air traffic slows in July while freight traffic went up 22.7%
The amount of international air traffic rose in July, but slowed down from the growth rate recorded in June. This data offers new proof that the recovering economy is beginning to wane.
Figures from the IATA stated that international scheduled air freight traffic grew 22.7 per cent this July over the same month last year. The airline industry body also noted that international passenger traffic grew 9.2 per cent.
The figures for cross-border air shipments are seen as an important gauge on the status of global trade. The IATA measures that data in freight tonne kilometers.
This growth and recovery has come quicker than expected, according to Giovanni Bisignani. The Director General and CEO of the IATA also noted that looking ahead to the close of this year, the rate of growth will probably slow down.
North American and European consumer confidence is still frail.
These weak confidence levels are having an effect on both the leisure sector and freight traffic. After the demand for cargo grew based on re-stocking inventory levels, growth from that point is based mainly on consumer spending which is still weak, according to Bisignani.
The 240 airlines handling 94 per cent of all international air traffic are represented by the IATA. There is no data included for domestic flights.Andrew Reid, Staff Writer, Gulf Jobs Market News