IATA cuts annual air cargo traffic growth forecast citing trade frictions, Brexit

SINGAPORE (Reuters) - The International Air Transport Association (IATA) on Tuesday nearly halved its annual forecast for traffic growth in the air cargo market to 2 percent citing trade frictions, Brexit and anti-globalization rhetoric.

That is lower than a previous estimate of 3.7 percent traffic growth issued in December and leaves airlines more dependent on passenger revenue for growth.

“Developments in the political climate are not going in our favor,” IATA Director General Alexandre de Juniac said at an air cargo conference in Singapore.

Weaker global economic activity and consumer confidence led to a 1.8 percent fall in global air freight traffic in January, marking the worst monthly performance in three years, IATA said last week.

Reporting by Jamie Freed; Editing by Stephen Coates