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Published on October 3, 2007

The figures have led the association to raise this year's industry profit forecast to US$5.6 billion (Bt192 billion), from $5.1 billion.

IATA represents more than 240 airlines consisting of 94 per cent of international scheduled air traffic.

The association said the average passenger load factor was 80.3 per cent in August, down slightly from July's record levels but up 0.9 per cent year on year. It was the first time average load factors had been higher than 80 per cent in any month other than July.

"The acceleration in growth in August partly reflects lower levels in August 2006, when demand was affected by security scares in the North Atlantic. However, it shows an underlying improvement in travel into the third quarter of 2007, as airlines in the Asia-Pacific in particular benefit from the region's robust economic growth," said director general and CEO Giovanni Bisignani.

Demand for international air freight also grew 6 per cent in August, its strongest rate of growth for 16 months. Growth for the year to date is 3.9 per cent.

"While the credit crunch clearly shook both business and consumer confidence in August, demand for air travel remained solid, with record-high load factors. This combined with strong revenue over the first half of the year is behind our improved industry profitability forecast of $5.6 billion for 2007," he said.

"Nevertheless, the industry's financial situation remains fragile, and the potential for weakening demand must continue to be met with improved efficiency across the value chain.

"The trend of increasing load factors is a concrete example of how aviation's business and environmental goals are aligned with efficiency as a common denominator. As governments continue to squabble over emissions-trading in the aftermath of the triennial assembly of the International Civil Aviation Organisation, the industry is getting on with the business of meeting consumer demand with ever-improving environmental performance."

The Nation