IATA says 2008 will be tough
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The International Air Transport Association (IATA) said 2007 was the best in recent memory but there would be “no encore performance” this year.
Releasing its full-year traffic results for last year, IATA said strong passenger traffic growth of 7.4% was a key component of the industry’s US$5.6 billion profit in 2007.
“The first black number since 2000,” said Giovanni Bisignani, IATA’s Director General and CEO.
He cautioned that the story for 2008 would be different.
“Oil prices are higher than ever. Economic uncertainty accompanying the US credit crunch is broadening. And the slower growth for passenger demand in December sets the trend for the coming months.
“In a tough business environment the mantra remains the same: efficiency everywhere is everything,” Bisignani added.
December passenger traffic demand rose 6.7% down from the 9.3% jump recorded in November.
“This step down reflects the impact of rising prices and economic uncertainty that grew more acute in December,” an IATA release said.
Regionally, Asia Pacific carriers’ 7.3% growth mirrored that of the global average. Growth indicates the continuing strength of the Chinese and Indian economic expansion making air travel accessible to large new markets, IATA said.
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