International air cargo traffic increases by 3% in May

International air cargo traffic grew 3 percent in May, according to the International Air Transport Association. (7/3/2003)


The growth in cargo contrasts sharply with the 21 percent drop in worldwide passenger movements. Giovanni Bisignani, IATA's director general and chief executive, blamed the SARS crisis for the plunge in passenger travel, but expressed optimism about recovery. "The worst of SARS is likely behind us. The WHO (World Health Organization) has removed all SARS travel advisories and it is time to get back to business," he said. North American was the only region where carriers reported a decline in freight traffic in May. Volume there fell 5.9 percent compared with May 2002.

Despite the decline in May, North American carriers registered an overall gain of 11.4 percent in the first five months of the year, apparently due in large part to shipments related to the buildup prior to the Iraq war.

European carriers reported a 1.4 percent gain in cargo in May, while volume for the January-May period was 3.3 percent. Asia-Pacific carriers scored a modest 0.9 percent increase in May, but a solid 10 percent increase for the first five months. South American carriers had a 2.8 percent gain in May and a 12 percent increase year-to-date.

Total freight traffic worldwide rose 8.7 percent in the first five months of the year, compared with a 6.4 percent drop in worldwide passenger travel. Bisignani cautioned that full recovery would take time. "An increase in traffic is not a return to profitability. Major challenges remain. Most immediately, airlines must remain prudent in re-introducing capacity. Secondly, industry-wide cost cutting efforts must be re-doubled to put our crippled balance sheets back in order. Finally, we must intensify the drive to revamp the outdated regulatory framework that prevents airlines from acting like modern businesses. The long-term recovery of the air transport sector, and all of the follow-on benefits that it will bring to the global economy, cannot occur if the airlines remain sick. These challenges must be met head-on," he said.