The International Air Transport Association (IATA) has reported that global airfreight volumes grew by 4.6 per cent in 2006, up from 3.2 per cent growth in 2005, but growth remains below historic increases of 5.6 per cent.

Passenger volume rose 5.9 per cent in 2006, down from 7.6 per cent the previous year. But 2006 passenger load factors rose to a record high of 76 per cent, up from 75.1 per cent in 2005.

With air cargo growth rates, the key markets of Europe and Asia were described as being "relatively subdued" at 1.7 per cent and 4.7 per cent respectively, owing to high fuel costs and competition from other transport modes, particularly in Europe.

North America was seen to be the most improved market as freight growth increased from 0.4 per cent to 6 per cent as airlines switched capacity towards cargo.

IATA said in a statement the full-year traffic results for 2006 showed "slower but more profitable growth".

The Middle East was the fastest growing region for both passenger and cargo, after recording full-year growth of 15.4 per cent and 16.1 per cent respectively.