The International Air Transport Association (IATA) announced traffic results for June which showed a slight softening in demand for both air travel and freight markets.

Compared to June 2010, passenger demand was up 4.4 per cent while freight demand was three per cent lower, IATA said.

The trend for passenger travel remains upwards, but at a slower pace than the post recession rebound which was at an annual rate close to ten per cent.

The slowdown reflects slower economic growth and increased costs resulting from higher jet fuel prices, and increased taxation (in some countries).

Freight volumes have not grown since July-August 2010.

May 2010 was the post-recession re-stocking peak, compared to which the June 2011 international freight market was six per cent smaller. 

While world trade is expanding at seven per cent a year, the benefit is being realised more by modes of transport other than air.

“Compared to May both passenger and cargo markets contracted by about one per cent,” said IATA director general Tony Tyler.

“For passenger traffic, this is a speed-bump in a gradual post recession improvement.

“But air cargo continues in the doldrums at six per cent below the post-recession peak.”