Air cargo capacity shrinks by 5pc
The economic crisis has frightened the world's airlines into quickly cutting cargo capacity, new figures show.
The International Air Transport Association (IATA) said global air cargo capacity shrank 5pc during October compared with 12 months earlier, even as the volume of world trade fell just 1pc.
The contraction comes as the world's leading economic regions continue to suffer from lacklustre growth and concerns recession will re-emerge.
"Air freight is among the first sectors to suffer when business confidence declines," said IATA director general Tony Tyler.
But the IATA said that, despite the fall in cargo capacity, the world's airlines continued to experience passenger traffic growth -- but added the rise had been marked by strong regional performances, rather than an across-the-board increase.
Mr Tyler cautioned that with Europe accounting for almost 30pc of world air travel, the overall strength in the wider airline business was based on "fragile foundations" as the eurozone crisis continued.
Air passenger traffic fell 1.9pc in North America during October. European airlines reported a 6.4pc increase.