Trade war could moderate growth of pax, cargo demand: IATA

IATA has warned that an escalation in global trade tensions could moderate the strong outlook for long-term passenger and freight demand, but is unlikely to trigger a major crisis for the world's airline industry. In a recently released research note, IATA Economics says moves towards global trade protectionism are not positive for air transport, however at this stage the impact appears to be minimal. “The overall scale of the economic damage depends on both the extent and the severity of any tariffs and other restrictions that are put in place,” it adds. On the passenger side, the Association expects that demand impacts will most likely be driven by lower GDP growth and its impact on incomes. However, its modelling suggests that passenger demand growth will continue at a slightly lower rate rather than reversing course. <br/>