Cross-border air freight traffic grew a meagre 1,3% year-on-year in May, according to airline industry figures released on Wednesday that suggest high oil prices are damping international trade flows.
The International Air Transport Association (IATA) said the sluggish cargo growth — compared with 4,3% growth in the full-year 2007 — also reflected the impact of an earthquake in China and weakness in the Japanese economy.
Cross-border air traffic, which IATA measures in freight tonne kilometres, is considered a leading indicator of the health of world trade.
Passenger traffic was recorded rising 6% year-on-year in May, also weakening from a 7,4% annual rate for 2007. The price of jet fuel averaged $160 a barrel in the month, 87% higher than in May 2007, IATA said.
”The high price of oil is re-shaping the industry. The major shifts in traffic flows experienced during May reflect this,” IATA director general Giovanni Bisignani said in a statement.
IATA represents about 230 airlines operating 93% of scheduled international air traffic. Domestic flights are excluded from its data, which is released monthly. – Reuters