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Asia Pacific airlines continued to see robust demand in May due to front-loading of shipments and rerouting of goods away from China to other markets in Asia, although the pace of growth began to slow down.
International air cargo demand, measured in freight tonne kilometres (FTK), grew by 3% year on year in May, said the Association of Asia Pacific Airlines (AAPA).
Weaker export volumes on the China-US route, partly due to the removal of de minimis for e-commerce goods, were offset by increased shipments to other markets.
These operating conditions were a continuation of those reported in April by the AAPA.
Offered freight capacity rose by 1.3% year on year, resulting in a one percentage point increase in the average international freight load factor to 62.8% for the month.
But despite the growth in air cargo business, the pace of growth moderated due to weaker export activity from key manufacturing economies, noted the AAPA.
Commenting on the first five months of the year, Subhas Menon, AAPA director general, said: “In the air cargo markets, international freight demand registered 4.5% growth, supported by front-loading of shipments and rerouting of goods to other gateways amidst mounting economic headwinds.”
He added that "air cargo markets are expected to come under pressure from weakening export orders, although shifts in trade routes could help mitigate some of the impact".
Speaking about the general operating conditions for Asia Pacific airlines, Menon said carriers face an "increasingly challenging operating environment, shaped by rising trade and geopolitical tensions, persistent supply chain constraints, and more frequent overflight diversions due to airspace closures in conflict zones.
"In addition, fuel prices may remain volatile if the Middle East conflict prolongs".
