Air transport "is evolving into a low-cost industry", says International Air Transport Association director general and chief executive Giovanni Bisignani, but it mustdo more to simplify travel processes to bring costs and "the hassle factor" down.
IATA has forecast growth in the passenger and cargo markets worldwide of 6% a year in the 2004-8 period, while acknowledging that growth in loads will not be reflected in profits because yields remain under pressure.
"It looks like we will finish 2004 with the strongest traffic rebound since the 1991 recovery from the effects of the first Gulf War. Expectations for the rest of the period are in line with historical industry trends. If nothing changes in the operating environment this is the start of a good news story for the industry," says Bisignani.
Passenger traffic growth for 2004, compared with 2003, will be 11% in absolute numbers and 14% in revenue passenger kilometres, says IATA. This "phenomenal growth" is largely the result of a rebound following the impact of SARS the previous year, explains Bisignani, warning that the industry may have to learn to live with high fuel prices. The airlines' 2004 fuel bill will be $62 billion, $15 billion up on 2003, he adds.
IATA is urging airlines, airports and air navigation service providers to adopt a policy to "save a minute" on every trip. Across the airline industry, this would translate into savings of $27 billion.
DAVID LEARMOUNT / GENEVA
Source: Flight International
