IATA cuts annual air cargo traffic growth forecast citing trade frictions, Brexit

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IATA cuts annual air cargo traffic growth forecast citing trade frictions, Brexit
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The International Air Transport Association (IATA) on Tuesday nearly halved its ...

SINGAPORE - The International Air Transport Association on Tuesday nearly halved its annual forecast for traffic growth in the air cargo market to 2 percent citing trade frictions, Brexit and anti-globalization rhetoric.

That is lower than a previous estimate of 3.7 percent traffic growth issued in December and leaves airlines more dependent on passenger revenue for growth. Weaker global economic activity and consumer confidence led to a 1.8 percent fall in global air freight traffic in January, marking the worst monthly performance in three years, IATA said last week.

Asian airlines have an outsized role in air freight, accounting for nearly 40 percent of the global market because the region is a manufacturing and e-commerce hub.

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