IATA warns of weakening markets amid continued economic weakness

A further weakening of air travel and freight markets in the months ahead looks likely, according to IATA, which reported a further softening of global air traffic demand in Nov-2011 amid continued weakness in the global economy. IATA, in its Nov-2011 Air Transportation Market Analysis, added that air cargo markets have contracted by around 4% from Jan-2010 levels, compared to growth of around 2% in passenger markets.

However, IATA director general and CEO Tony Tyler noted that despite this relative growth in the passenger markets, "the trend has been both soft and volatile" and "continuing economic uncertainty will likely mean market shortcomings deepening as we enter 2012". Business confidence, as represented by the Purchasing Managers' Index, is also persisting at levels that signal contraction, indicating further weakness ahead.