Traffic volume and shipments for the domestic U.S. air freight and express industry declined in 2007, according to a new report that portrays the premium air shipping industry as mired in a lengthy period of stagnation.

The Air Cargo Management Group said domestic air express business eked out a 1 percent gain in revenue last year, to $32.8 billion, but largely because of fuel surcharges.

By contrast, the shipment count for U.S. air express carriers actually declined 1.8 percent, and traffic measured in revenue ton miles fell 1.5 percent.

"The industry remains at or near 1999 levels based on both these performance metrics," said Robert Dahl, project director at Seattle-based ACMG. "In other words, this industry has gone through eight years with no net growth."

Dahl said early traffic figures from 2008 suggest the air express industry is not on a growth path this year.

"In fact, there are numerous challenges facing the industry, including record-high fuel prices, a weak U.S. economy and a perceived shift of air shipments to trucks, which would lead to further traffic declines in 2008 and 2009," he said.