Air cargo demand continues to drop against a backdrop of diminishing business confidence levels and significant declines in international trade volumes according to the Association of Asia Pacific Airlines (AAPA).
Overall, Asia Pacific airlines saw air cargo demand in freight tonne kilometres (FTK) fall by 6.4 per cent. year-on-year in August. Subdued demand conditions, with businesses remaining cautious on their inventories, contributed to the persistent weakness, AAPA says.
Combined with a 1.1 per cent increase in offered freight capacity, the average international freight load factor fell by 4.7 percentage points to 58.3 per cent for the month.
Commenting on the results, Andrew Herdman, AAPA director general says: “Air cargo demand declined by 5.9 per cent during the first eight months of the year, with business confidence deteriorating further in August against a backdrop of heightened global trade tensions.
“Consumer goods markets continued to expand, but demand for intermediate goods fell further, contributing to the decline in air shipments.”
Looking ahead, Herdman adds: “Whilst the long term outlook for air travel remains broadly positive, Asian airlines continue to face a challenging business environment.”