Surprising passenger growth in Sep-2011 but weakness expected in the months ahead: IATA

Passenger traffic rose 5.6% year-on-year in Sep-2011, according to IATA, which described the result as a "pleasant surprise". However, despite the better-than-expected figures in the month, IATA stated it was preparing itself for weakness in the months ahead amid deteriorating business and consumer confidence and collapsing freight demand, the precursors for a slowdown in passenger growth: "We are still expecting a general weakening in passenger traffic as we head toward the year-end". Meanwhile, there was a further deterioration of cargo volumes in Sep-2011, with a 2.7% contraction in the month, for the fifth consecutive month of declines, in line with falling business and consumer confidence.

Despite stronger than expected growth in passenger markets during Sep-2011, the industry is expecting "more difficult times ahead" according to IATA.