Capacity is returning but at a much slower rate so load factors are still at record or near-record highs, according to the March/April edition of the International Air Transport Association's "Financial Monitor."

Demand rose "strongly" in the first quarter on 2010, with air freight up by 26 per cent and air travel up nine per cent year on year, said a British International Freight Association (BIFA) newsletter which pointed out the main highlights of the IATA report.

But fuel prices increased by US$10 per barrel from first quarter averages to over $96 per barrel raising cost pressures, it said.

"Average fares are also rising, providing some offset, as supply-demand conditions tighten further."

It added that deliveries of new aircraft were up to 116 in March with eight taken out of storage and 12 aircraft retired.

Source: schednet