THE International Air Transport Association (IATA) said that since the deep drop of December last year and a decline of 20 per cent in the first quarter of 2009 freight volumes have steadied but are compounded by excess capacity in the global fleet.

"Cargo profitability has been under extreme pressure from collapsing volumes and yields in the past six months," said the IATA in an American Shipper report, with loads decreasing by seven per cent during the first quarter and yields down further still by 17 per cent.

Despite 99 freighters being parked up there is still an overcapacity in widebody passenger planes.

The association added that although fuel prices were cause for cheer at 60 per cent down compared to last year the price is likely to go up with an increase of US$20 per barrel already.