Interpac Business and Migration Solutions Melbourne Australia

（November 26, 2010）

A RECOVERY in the global aviation industry is gaining strength, international passenger and freight data suggest.

Passenger demand in October jumped 10 per cent year-on-year while freight traffic climbed 14 per cent, the International Air Transport Association reported, indicating that growth patterns were returning to normal but still were dependant on developments in the world economy.

Both figures were below corresponding figures in September, but offer encouragement for an industry rebounding from a savage downturn.

"We are ending 2010 in much better shape than we were just 12 months ago," said IATA director general Giovanni Bisignani. "Airlines have turned losses into profit -- albeit tiny.

"Despite the economic uncertainties people continue to fly," he said.

"Airlines appear to be managing capacity in the upturn with a good deal of prudence. And cost control continues to be a main theme for airlines everywhere."

IATA, which represents some 230 airlines worldwide, comprising 93 per cent of scheduled international air traffic, said airlines in North America saw passenger demand last month rise 12 per cent from the same month in 2009, the region's fastest rate of growth this year.

Capacity increased 12 per cent and load factor was 82.5 per cent, the highest in all the regions. Load factor measures the proportion of an airline's seats filled by paying passengers.

Carriers in Europe saw demand last month rise 9.6 per cent year-on-year, compared with growth of 8.6 per cent in September.

Demand in Asia rose 7.3 per cent while capacity edged up 5.3 per cent.

In the Middle East, demand soared 18 per cent, even though travel was affected by the Ramadan holiday. Capacity in the region jumped 14 per cent.

African airlines reported demand climbed 13 per cent with capacity up 8.9 per cent. Load factors improved to 71.8 per cent.

In Latin America, demand rose 4.9 per cent as capacity fell 0.7 per cent. Figures in that region were skewed by the bankruptcy of Mexican carrier Mexicana.

Freight traffic powered ahead in the Asia-Pacific region, which accounts for 44 per cent of international volumes. Strong economic recoveries in India and China, in particular, drove growth. Asia-Pacific airlines reported freight traffic last month grew 15 per cent compared with the same month a year ago, translating to an annualised rate of growth of 22 per cent.

European and North American carriers saw freight traffic rise about 12 per cent year-on-year. Volumes in both regions were boosted by the relative weakness of the euro and the dollar.

"The picture going forward is anything but clear, but for the time being, the recovery seems to be strengthening," Mr Bisignani said.

He urged governments in Europe to support the creation of a Single European Sky, a cost-efficient approach to air-traffic management and the absence of which he described as a "competitive disadvantage".

(Source: Australian.com.au)