Rising Air Cargo Demand in Asia Pacific

Rising Air Cargo Demand in Asia Pacific: A Positive Outlook

The air cargo industry in the Asia Pacific region is experiencing a significant rise in demand, driven by robust trade activity within the region and globally. This encouraging trend was highlighted in the recent report by the Association of Asia Pacific Airlines (AAPA), as featured in Air Cargo News.

In May 2024, Asian carriers saw a remarkable 17.9% year-on-year increase in international air cargo demand, measured in freight tonne kilometres (FTK). This growth was accompanied by a 1.4 percentage point rise in the average international freight load factor, reaching 61.4%, thanks to a 15.1% expansion in offered freight capacity.

Subhas Menon, AAPA director general, attributed this upturn to the current global economic recovery. “The pick-up in global economic activity, supported by improvements in business confidence and increased consumer spending, has boosted demand for both international travel and air cargo,” Menon explained. “Asia Pacific airlines, being major players in the air cargo markets, have also benefitted from disruptions to ocean freight services.”

Reflecting on the first five months of the year, Menon noted a 16% year-on-year growth in international air cargo demand. This positive momentum underscores the region’s resilience and strategic importance in the global air cargo market.

In addition to cargo, the passenger segment also saw significant growth. The region’s airlines carried a total of 27.9 million international passengers in May, marking a 23.9% increase compared to the same month last year. However, traffic levels were still slightly below pre-pandemic figures, averaging 89.4% of 2019 levels. Demand, measured in revenue passenger kilometres (RPK), grew by 27.4% year on year.

Looking ahead, Menon expressed optimism about the future: “Encouraging trends in passenger and cargo traffic bode well for Asian airlines this year, following strong performance in 2023. However, profit margins remain under pressure, with operating costs impacted by the strong US Dollar and jet fuel prices averaging above $100 per barrel during the first five months of the year.”

Menon emphasized that despite these challenges, Asian airlines are committed to maintaining stringent cost controls while proactively seeking growth opportunities.

For more insights into the latest trends and developments in the air cargo industry, stay tuned to our blog. We are dedicated to keeping you informed about the dynamic world of air freight and how it impacts your business.

Source: Air Cargo News