IATA director general Tony Tyler has implored governments around the world to cut aviation taxes and ‘onerous regulations’.
Tyler made his call as IATA released data showing that global air travel in November was up by 4.6 per cent compared to the same month in 2011 and also up by 2.9 per cent on the previous month, October.
“Governments should resolve to bring down the barriers to connectivity growth,” said Tyler. “This can be done by addressing excessive taxation, high infrastructure costs, onerous regulation and improving the capacity and efficiency of airports and air navigation services.
“A strong air transport sector is in the self-interest of governments eager to support economic growth and development. Trade is the key to growth. For that connectivity is critical and it is aviation that makes connectivity happen.”
Tyler said that November had brought “some positive signs for air transport demand - particularly for air cargo”.
“It is premature to consider this a turning point for air cargo markets in terms of bouncing back and regaining lost ground,” he said. “But, when coupled with positive economic developments in the US and an improvement in business confidence in recent months, the conditions are aligning to see a return to growth in 2013.”
However, Tyler also warned that despite passenger growth the global aviation industry was only expected to make a profit margin of 1.3 per cent during 2013 which he described as “very weak”.
“Furthermore current returns on investment are less than half the industry’s cost of capital, which continues to erode shareholder value,” he added.