Airlines say business travel demand holding up

The airline industry says it is seeing signs of business confidence and a recovery in world trade.

The International Air Transport Association’s chief economist reports business travel demand is holding up and it expects renewed growth in air cargo demand in the second half of this year.

Asia – but without earthquake-hit Japan – is seen as the biggest growth area with stagnation in Europe and the United States.

IATA’s Brian Pearce said there is a “clear risk of overcapacity” in some markets, but noted that the aviation industry outlook in Asia remained positive.

Air cargo demand soared as the global economy emerged from recession last year, driven by restocking and just-in-time supply chains.

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