ABSTRACT
In 2008 world air traffic grew by 1.6 per cent, air cargo fell by near 4.7 per cent year over year, but December figures give pause; passenger traffic down 4.6 per cent and air cargo a stunning 22.6 per cent. In 2009 both passenger and cargo traffic were down considerably as, in both cases, yields were down 14 per cent. However, 2010 has exhibited a dramatic about face as passengers, passenger kilometres and freight have all grown significantly; total freight was up 9 per cent and passenger growth up 3 per cent. This resulted in strong financial performance across most all carriers. Yet the underlying consequences of both the financial crises and bailouts are having a lingering effect. The US economy is slow to recover and is carrying an enormous amount of debt; debt held in 2011 is approximately 70 per cent of GDP. Monetary authorities are still engaged in quantitative easing. Europe is facing sovereign debt issues with Greece and Ireland already bailed out and Spain, Portugal and possibly the UK on the brink of needed assistance to deal with their high debt loads. Germany on the other hand is carrying the EU in terms of economic performance. South East Asia, South America, Africa and the Middle East are all showing positive signs of both economic and aviation market growth.
