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Air cargo and passenger markets posted strong growth last year, according to the Association of Asia Pacific Airlines
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The global air cargo market experienced solid growth last year after two years in decline
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Robust e-commerce activity coupled with disruptions to maritime shipping pushed air cargo volumes higher
Air cargo and passenger markets posted strong growth last year, according to the Association of Asia Pacific Airlines (AAPA).
International air cargo markets recorded healthy expansion in 2024, after two years in decline, with robust e-commerce activity coupled with disruptions to maritime shipping pushing air cargo volumes higher.
In terms of freight ton kilometers, there was a 14.9% rise for the year, outpacing the 14.6% growth in offered freight capacity, AAPA said in a statement.
The average international freight load factor rose by a slight 0.2 percentage points to 61% last year.
Meanwhile, increased flight frequencies together with network expansions backed the solid growth in travel demand. In total, Asia Pacific airlines carried a combined 365 million international passengers last year, a 30.5% rise compared to 2023.
In terms of revenue passenger kilometers, demand rose by 28%, reflecting relative strength on regional routes.
The average global passenger load factor rose 0.9 percentage points higher to 81.6% last year, after accounting for a 26.6% expansion in available seat capacity.
Subhas Menon, AAPA director general, said: “Despite weakness in the global manufacturing sector, Asia Pacific carriers saw significant growth in their air cargo business, driven by a surge in e-commerce sales and the region’s role as a manufacturing hub, particularly in China. Persistent disruptions in maritime shipping also encouraged a modal shift in transport, contributing to the 15% growth in international air cargo demand for the year.”
In general, he said 2024 was a strong year for Asia Pacific airlines.
“The post-pandemic recovery on North East Asia routes, helped by the relaxation of visa policies, together with overall healthy demand across the region, drove growth in both leisure and business travel markets,” said Menon.
Looking ahead, he said the outlook for air travel market this year remains “broadly positive.”
Growth rates, however, are expected to be moderate since airlines face such challenges as rising labor, maintenance, and aircraft leasing costs.
There will also be operational pressures due to delays in aircraft deliveries.
To navigate these challenges, the AAPI director general said, “airlines are focusing on active cost management and seeking the commitment of equipment suppliers to address supply chain problems, while continuing to invest in growth opportunities.”
