The world's top airline association has predicted a dip in air travel due to the British terror alert this month, but said the prospects for the sector were nevertheless bright.
'While we expect to see another isolated dip in August due to the UK terror alert, overall, improved efficiency and high load factors will help to mitigate the impact of the high oil prices and bodes well for the bottom line,' IATA Director General Giovanni Bisignani said.
Worldwide, passenger traffic continued to grow, at a rate of 5.2% in July 2006 compared to the same time last year, according to the International Air Transport Association's latest data. Freight transport in July grew 3.7%.
The airline industry was also buoyed by higher loads per flight, reaching an average of 80.8%, a sign of greater efficiency, the IATA said.
'The load factors are amazing. The result is a strong revenue environment that is helping to combat the increasing price of fuel,' said Bisignani. 'But recent shocks in the UK and the Middle East remind us that there is no room for complacency on efficiency,' he added.
The conflict in Lebanon and Israel that erupted in July helped brake air travel growth in Middle East, which has been the fastest growing area in recent years.
'For the first time in two years, Middle Eastern carriers were not the leaders in cargo or passenger growth,' Bisignani said. Middle Eastern carriers posted growth of 12.9% for passenger and 15.2% for cargo in July.
They were overtaken by African carriers, which recorded 13.1% growth in passenger traffic and 20.6% for cargo.
Passenger travel grew by 3.3% in July in Europe and by 8% in North America.
UK authorities announced on August 10 that they had foiled an alleged plot to blow up US-bound passenger jets, halting flights at London's Heathrow airport, one of the world's busiest, for most of the day.
Flights in and out of Britain were thrown into chaos for several days. The incident also prompted tougher restrictions on hand luggage worldwide and boosted security checks on passengers.
