Air cargo sector to hit $2.5bn profit
The International Air Transport Association (IATA) said today that the global airfreight industry is record a profit of US $2.5 billion in 2007, and see a 5.3% growth between 2006-2010.Speaking at the World Cargo Symposium in Mexico City, Giovanni Bisignani, Director General of IATA, noted that the main growth for air cargo would be in Asia.He added that with intra-Asia routes, this will account for 8.3 million tonnes of cargo - 26% of the global total - by 2010.
"That is good news, but it also presents challenges. China alone will account for 30% of the industry's growth and we must work particularly hard to overcome potential infrastructure bottlenecks," he said.This major boost will lead to a unique challenge, which according to Bisignani is "how to add capacity to meet outbreak peak demand from Asia while effectively utilising the equal inbound capacity."Although the US$2.5 billion global profit is good news, it is still "a long way" from the 7-8% return that the industry must generate to cover its cost of capital, IATA said.The World Cargo Symposium gathered 800 of the top leaders of the US$55 billion global air cargo industry. Source
"That is good news, but it also presents challenges. China alone will account for 30% of the industry's growth and we must work particularly hard to overcome potential infrastructure bottlenecks," he said.This major boost will lead to a unique challenge, which according to Bisignani is "how to add capacity to meet outbreak peak demand from Asia while effectively utilising the equal inbound capacity."Although the US$2.5 billion global profit is good news, it is still "a long way" from the 7-8% return that the industry must generate to cover its cost of capital, IATA said.The World Cargo Symposium gathered 800 of the top leaders of the US$55 billion global air cargo industry. Source
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