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Business travel demands hold up: IATA

Bapun Raz

Staff member
3 Nov 2010
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Airlines representing 93 per cent of world traffic were given a respite from strikes, oil prices and profit warnings with a prediction from the International Air Transport Association (IATA) that world trade would pick up and that Japan's crisis would ease by end-year. "Business travel is still solid. There has been a dip due to the Japanese earthquake, but we don't expect that to be permanent," Brian Pearce, Chief Economist, IATA, said.

According to a Reuters report by Raju Gopalakrishnan and Tim Hepher, Pearce said that after flattening out from a big recovery seen last year, air cargo movements should resume growth in the second half. “Japan should show a "pretty full recovery" in traffic by the end of the year as the impact on global supply chains from the March 11 earthquake and tsunami tapers off,” he added.

The geographical story remains mixed, Pearce said. "You are seeing the Asian, South American and many African economies actually doing extremely well at the moment. They are certainly not being held back by any of the debt problems that we currently see many European economies being held back by. Chinese domestic traffic, which is often regarded as a barometer of the domestic stimulus in the world's second-largest economy, had dipped temporarily as authorities moved to head off inflation, but should return to a growth path.”

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