Share

African airlines' growth takes off

Johannesburg - African carriers were the only ones to show an increase in air travel growth rates from October (12.6%) to November (16.4%), the International Air Transport Association (Iata) said on Thursday.

The region's carriers moved 11% more travellers in November than they did at the pre-recession peak in early 2008.

However, international air traffic slowed in a sign that the global economic recovery is losing speed.

Iata said harsh weather conditions in many countries in December were weighing on business.

"The year-end holiday season has been tough for travellers and for airlines," Iata director-general, Giovanni Bisignani said. "Airlines saw lost revenues and saw costs rise."

Bisignani repeated Iata's recent profit forecast for the industry, saying a strong end to 2010 overall should lift profits to $15.1bn. Slowing traffic growth was in line with projections for a reduced profit of $9.1bn in 2011.

"The industry is shifting gears in the recovery cycle," Bisignani said.

"Growth is slowing towards normal historical levels in the 5% to 6% range. Relative weakness in developed markets is being offset by the momentum of economic expansion in developing markets," he added.

The air traffic numbers are in line with other signs that the global recovery from economic crisis is losing speed. The International Monetary Fund expects 4.2% global growth next year, which would be a step down from 2010 but well above the recession-hit rates of the previous two years.

Air freight - an important indicator of trade and economic recovery - grew by 5.4% in November from a year ago, well below the 14.5% rise recorded in October.

Freight traffic, which accounts for 35% of the value of goods traded internationally, is now at the pre-crisis levels of early 2008, said Iata, which represents 230 airlines including Aeroflot, Air China, Lan Airlines and Lufthansa.

Passenger demand - a reflection of business and consumer confidence - was 8.2% higher in November than a year earlier, below October's 10% rise, and is now 4% above pre-crisis levels.

Air traffic growth slowed significantly in all regions with the exception of Africa, Iata said. Freight levels remained well below their pre-crisis levels in North America and Europe.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
19.15
-0.7%
Rand - Pound
23.82
-0.6%
Rand - Euro
20.39
-0.5%
Rand - Aus dollar
12.30
-0.5%
Rand - Yen
0.12
-0.6%
Platinum
950.40
-0.3%
Palladium
1,028.50
-0.6%
Gold
2,378.37
+0.7%
Silver
28.25
+0.1%
Brent Crude
87.29
-3.1%
Top 40
67,190
+0.4%
All Share
73,271
+0.4%
Resource 10
63,297
-0.1%
Industrial 25
98,419
+0.6%
Financial 15
15,480
+0.6%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders