The International Air Transport Association (IATA) released full-year traffic results for 2005 showing that international passenger traffic grew by 7.6% in 2005 while international freight traffic increased by 3.2%.
"The industry is returning to a more normal growth pattern after the shocks that began in 2001. Passenger traffic is lower than the 15.3% increase recorded in 2004, but above the historical growth of 6%. Air freight, however is disappointingly low as a result of weaker demand from critical sectors such as IT and semi-conductors," said Giovanni Bisignani, IATA’s Director General and CEO.
Regionally, only Latin America (11.4%) and the Middle East (13.1%) reported double-digit passenger traffic growth in 2005. Load factors also improved by 0.9% to 75.1% year over year, reflecting the industry’s restrained response to the more modest growth rate seen in 2005.
December freight traffic showed signs of emerging from its year-long slump. It rose by 5.5% over the same period last year bolstered by improved demand in key Asian and North American markets. December passenger traffic grew by 6.1%.
Despite this growth, the industry lost US$ 6 billion in 2005. US airlines lost US$10 billion, European carriers made US$1.3 billion and Asian carriers earned US$1.5 billion.
“Growth and profitability are completely different concepts. Freight and passenger traffic are forecast to grow in the 5 to 6% range during 2006 but the industry is projected to record another loss of over US$4 billion for 2006,” said Bisignani. “The industry will not see black ink until at least 2007.“
