Boeing Says Global Air Cargo Market to Expand at 5.2% Annual Rate

Boeing

said today that the global air cargo market will expand at a 5.2 percent annual rate over the next 20 years. According to the Boeing World Air Cargo Forecast 2012/2013, growth will be driven by world gross domestic product (GDP) that will nearly double over the forecast period. Trade is expected to increase through liberalization of markets and more efficient aircraft and infrastructure improvements will reduce the cost of air cargo. Boeing released the biennial forecast, which is widely cited by airlines and industry groups, at the International Air Cargo Forum and Exhibition 2012 in Atlanta. Air cargo traffic will grow over the long term despite current near-term market weakness and worldwide economic uncertainty. The industry languished following the 2010 recovery posting slight declines in traffic in 2011 and thus far in 2012. "Current industry uncertainty has brought a disparity of viewpoint concerning the future of the air cargo business, but economic activity – particularly world gross domestic product and industrial production – remains the key driver of the air cargo market," said