HONG KONG is expected to be the world's fastest-growing air cargo market, growing 12.2 per cent annually over the next two years while China will be world's fastest-growing passenger market with a 10.8 per cent annual increase, says the International Air Transport Association (IATA).

"Asia is the most profitable region in the world. Of the 800 million new passengers who will fly by 2014, 360 million will be in Asia-Pacific and 214 million of those in China," said IATA director general Giovanni Bisignani.

IATA forecast the number of Chinese international passengers to rise to 82.1 million by 2014 from 49.2 million in 2009, making it the eighth largest market in the world, up from the ninth place in 2009.

It said that airlines worldwide were expected to report a combined profit of US$15.1 billion in 2010, including $7.7 billion from Asia Pacific carriers. It projected airlines in Asia Pacific region will earn $4.6 billion this year, absorbing more than half of the world's $9.1 billion total expenditure.

All of China's top three airlines, Air China, China Southern, China Eastern, and Hong Kong's Cathay Pacific have forecast a strong profit growth of between two and 15 fold for 2010.

With ambitious enhancement in air transport infrastructure, IATA projected China's air cargo volume would grow 11.7 per cent per year to 3.8 million tonnes in 2014 from 2.1 million tonnes in 2009. And Hong Kong's air cargo volume would increase to 5.3 million tonnes in 2014 from three million in 2009.

Mr Bisignani also urged Hong Kong to build a third runway to handle growing international traffic. "A third runway is needed and the time to start planning is now."