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Asia Pacific airlines lifted 2.8% more cargo in February year-on-year, according to the Association of Asia Pacific Airlines
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Offered freight capacity rose by 6%, outpacing the growth in demand resulting in a 1.7 percentage point decline in the average international freight load factor
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Region’s carriers are facing headwinds, particularly as rising costs, driven in part by fleet capacity constraints, continue to exert pressure on revenue
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The rise in protectionist sentiment also presents potential challenges to trade and broader business activity
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In response, Asian airlines maintain a cautious stance while exploring opportunities in high-potential growth markets
Asia Pacific airlines lifted 2.8% more cargo in February year-on-year with export activity slowing down across major manufacturing hubs, notably China, during the festive celebrations, according to the Association of Asia Pacific Airlines (AAPA).
Offered freight capacity rose by 6.0%, outpacing the growth in demand to result in a 1.7 percentage point decline in the average international freight load factor to 56.5% for the month, AAPA said in a statement.
For the first two months pf the year, international air cargo demand rose 4% from the same period last year “supported by higher demand for consumer and intermediate goods,” said AAPA director general Subhas Menon.
READ: Asia Pacific airlines see sustained air cargo demand in Jan
Meanwhile, a total of 30.8 million international passengers flew on the region’s carriers in February, representing a 5.9% increase over the number recorded in the same month last year.
In revenue passenger kilometer terms, demand grew by 9.2% year-on-year, reflecting relative strength on long-haul markets.
Combined with an 8.6% expansion in available seat capacity, the average international passenger load factor edged 0.4 percentage points higher to 82.2% for the month, said AAPA.
Looking ahead, Menon said, “Overall, airlines are expected to continue to benefit from sustained travel demand and growth in air shipments as a result of ongoing expansion in e-commerce activity.”
However, he said the region’s carriers are facing headwinds, particularly as rising costs, driven in part by fleet capacity constraints, continue to exert pressure on revenue.
The AAPA executive said the recent rise in protectionist sentiment also presents potential challenges to trade and broader business activity.
In response, Asian airlines “are maintaining a cautious stance, closely monitoring evolving operating conditions while actively exploring opportunities in high-potential growth markets,” he said.
