FINANCIAL SITUATION FOR CARGO BUSINESS IMPROVING SIGNIFICANTLY - IATA

KUALA LUMPUR, June 2 (Bernama) -- The International Air Transport
Association (IATA) says the financial situation for the air cargo business appears to be improving significantly with the emerging economies of Asia, China and India in particular, continuing to be the world's growth hotspots this year.

However, it said that other regions such as South America and the Middle
East are expected to register a 4-5 per cent growth.

It also said that American cargo airline profitability was back to
pre-recession levels in the fourth quarter of last year.

"The importance of cargo markets in Asia meant strong economic growth in
that region helped generate very rapid freight growth in the first quarter,
interrupted by the ash plume with most regions now showing fast growth," the
Geneva-based IATA said in a statement Tuesday.

Citing heads of cargo, IATA said they were confident of further gains in
future volumes and yields while freight volumes which were temporarily
interrupted by ash plume had grown at annualised pace of 26 per cent in this
year's first quarter.

"Yields were up by 15 percent in Q1 2010 as load factors regained pre-9/11
levels," IATA said.

"Shippers were still very confident but business inventory cycle appears to
be over which will put a brake on pace of air freight expansion," it said.

IATA said that the 20 per cent plus growth in world trade in the first
quarter of this year means plenty of demand for all transport modes at present.

"Risks and geographical differences remain but outlook for air cargo looks
better than it has done for the past two years," IATA said.

-- BERNAMA