Volumes rise but IATA warn of tough future
The International Air Transport Association has welcomed a global rise in passenger volume but warned that the aviation industry still faces an uphill battle to return to profitability.
The body said it faces “several risks” and described the threat of Avian flu as the “wild card for 2006.”
Volumes in January climbed 6.2% over the same month last year, with load factors increasing 1.1% to 74.6%.
Europe achieved slightly below average growth of 5.2% with the Middle East leading the way with a jump of more than 18%.
IATA director general Giovanni Bisignani said: “We are filling plans, and with high load factors, but there is a lot to do before the industry’s balance sheet recovers.
“The industry faces several risks. The rising price of oil continues to kill our profitability. The airlines are managing capacity as carefully as they are managing costs. As the record aircraft orders of last year are delivered, matching capacity to demand will become even more critical. And Avian flu is the wild card for 2006.
“Turning growth into profitability remains the challenge.”
Bisignani also warned governments about imposing “absurd taxes” on aviation and rejected calls from French president Jacques Chirac to slap a global tax on airlines to fund development.
“Airlines make a massive contribution to development by bringing tourists to destinations and transporting goods to markets,” he said. “Making air transport more expansive is akin to biting the hand that feeds development.”
Report by Steve Jones
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