Asia Pacific airfreight demand hampered by “prevailing weakness” in trade flows

Preliminary August traffic figures released by the Association of Asia Pacific Airlines (AAPA) show that “renewed declines in export orders prolonged the decline in air cargo markets”.

Demand, as measured in freight tonne kilometres (FTK), saw a slight 1.8% year-on-year fall in August when compared to the subdued volumes recorded in the same month last year.

The international freight load factor remained under pressure, recording a 6.6 percentage point decline to average 58.8% for the month, after accounting for a 9.2% year-on-year expansion in offered freight capacity.

Commenting on the results, Subhas Menon, AAPA director general, said that Asian airlines recorded a “7.6% decline in international air cargo demand, reflecting prevailing weakness in international trade flows. In addition, the normalisation of container shipping rates affected demand for air shipments of non-time sensitive goods”.

Looking ahead, he said that carrier are facing higher costs, “driven by inflation and the recent rise in jet fuel prices, which threaten to squeeze margins”.

Other challenges to growth include delays in aircraft deliveries, parts shortages, and increased competition due to increased capacity.

Reflecting the ongoing positive trend for passenger travel, the AAPA said that Asia Pacific airlines carried 25.7m international passengers in August, which resulted in 129.7% year-on-year growth, bringing demand to an average of 76.5% of pre-pandemic levels.

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