Business | Aviation
Freight volumes fuel hopes of economic growth
European airline freight volumes are shrinking more slowly than for several months, data showed on Friday, fuelling hopes of a broad-based economic recovery.
- Reuters
- Published: 00:00 October 12, 2009
- Image Credit: Bloomberg News
- Air freight is picking up slowly but the upturn remains fragile, the IATA said. Economists have been keeping an eye on cargo shipments for clues about the wider economic picture.
London/Brussels: European airline freight volumes are shrinking more slowly than for several months, data showed on Friday, fuelling hopes of a broad-based economic recovery.
Cargo shipments — a widely-watched indicator of economic health — fell 11.7 per cent year-on-year at European airports in August, continuing an upward trend that began during the summer, airports body ACI Europe said.
In September they fell 6.3 per cent across the seven British airports run by BAA, the slowest rate of decline since Nov-ember 2008, while they eased 9.3 per cent at major cargo carrier Lufthansa compared with a January-September fall of 15.2 per cent.
Cautious
Economists have been keeping a close eye on cargo shipments for clues about the wider economic picture, and the figures underpinned cautious expectations of an upturn, a picture also emerging from Friday's economic data.
The major seven economies in the 30-nation Organisation for Economic Co-operation and Development area are poised for recovery, with potential expansion on the cards for France and Italy, according to a survey published by the Paris-based agency.
And the International Energy Agency said a more optimistic economic outlook would drive a faster than anticipated recovery in world oil demand in 2010, as it increased its demand growth estimate by 150,000 barrels per day to 1.42 million.
International airlines are expected to lose $11 billion this year (Dh40 billion) on weak passenger and cargo demand, according to industry body IATA.
Air freight is picking up slowly but the upturn remains fragile, the agency said last month.
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