The International Air Transport Association (IATA) has revealed its concerns for the industry moving into 2012, admitting that it expects a tougher year for the air cargo industry.
According to a report by IFW, high oil prices and economic uncertainty will lead to slim profitability at best in 2012.
'It looks like we are headed for another year in the doldrums,' said IATA director general and CEO Tony Tyler. 'With business confidence declining, it's difficult to see any potential for significant profitable growth.
Tyler noted that airlines would make a little more money this year than originally anticipated, despite the economic challenges, but warned that it would not be a significant amount.
While airline profits may rise from the US$4bn projected in June to US$6.9bnm we should keep the improvement in perspective,' Tyler told IFW. 'The US$2.9bn bottom-line improvement is equal to about half a per cent of revenue, and the margin is a paltry 1.2 per cent. Airlines are competing in a very tough environment.'
IATA revealed that airfreight volumes had stagnated since the start of 2011, with the group cutting it's full-year growth projections to 1.4 per cent from an original estimate of 5.5 per cent.
