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Asia Pacific cargo and passenger demand continued to grow in March, based on initial data from the Association of Asia Pacific Airlines
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Measured in freight ton kilometers, international air cargo demand showed a 5.7% year-on-year increase in March, supported by forward demand in shipments ahead of potential imposition of tariffs
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In terms of revenue passenger kilometers, demand was up 9% while available seat capacity rose 11% year-on-year
Asia Pacific cargo and passenger demand continued to grow in March, based on initial data from the Association of Asia Pacific Airlines (AAPA).
Measured in freight ton kilometers (FTK), international air cargo demand showed a 5.7% year-on-year increase in March, supported by forward demand in shipments ahead of potential imposition of US tariffs.
Offered freight capacity expanded by 4.7%, leading to a marginal 0.5 percentage point rise in the average international freight load factor to 64% for March 2025.
Meanwhile, there were 31 million international passengers, which was a 6.9% year-on-year rise compared to March last year.
In terms of revenue passenger kilometers (RPK), demand was up 9% while available seat capacity rose 11% year-on-year. This indicated a 1.4 percentage point decline in passenger load factor, which averaged 80.8%.
Subhas Menon, AAPA Director General, said: “On the cargo front, demand rose by 5% year-on-year in the first quarter, extending the solid 15% annual growth achieved in 2024. Anticipation of US tariff announcements prompted front-loading of air shipments on selected routes, while robust e-commerce activity continued to support overall demand.”
He also said: “Asia Pacific airlines carried a total of 95.6 million international passengers in the first quarter of 2025, a 13% year-on-year increase that marked a strong start to the year, following the solid 29% growth seen in 2024. This came on the back of international route expansion, liberalized visa regimes, and resilient economic activity across the region.”
Looking ahead, Menon said the sweeping US tariff announcements have resulted in volatile activity across the world’s stock markets, casting uncertainty over the outlook for Asia’s export-oriented economies.
“This could weigh on consumer and business sentiment, potentially softening passenger and cargo demand in the coming months,” he said.
Menon further stated that operational challenges resulting from persistent supply chain issues, including aircraft delivery delays, continue to constrain capacity expansion.
As a result, airlines face elevated operating costs, including high maintenance, leasing and personnel expenses. In response, “Asia Pacific carriers remain focused on driving cost efficiencies, whilst continuing to expand their networks and pursue customer service innovation,” said the AAPA director general.
READ: Air cargo market faces uncertain future with Trump’s tariffs
