Traffic figures for the month of October released today by the Association of Asia Pacific Airlines (AAPA) show international air cargo demand declining further as the slowdown in overall demand for exports continues to weigh on international trade flows.
International air cargo demand in freight tonne kilometre terms (FTK) declined by 5.9 per cent year-on-year in October, whereas offered freight capacity increased by a marginal 0.1 per cent. As a result, the average international freight load factor fell, by 3.9 percentage points to 61.9 per cent for the month.
Commenting on the results, Andrew Herdman, AAPA director general says: “The first ten months of the year saw Asian airlines carry 312 million international passengers, a 4.3 per cent increase compared to the same period last year. On the other hand, air cargo volumes fell by 5.6 per cent, with trade tensions and geopolitical risks dampening business sentiment and export orders.”
Looking ahead, Herdman adds: “Against a backdrop of a slowing global economy and intense competition, Asian airlines face continued pressure on margins. Nevertheless, the region’s carriers remain pro-active in identifying measures to control costs in order to maintain overall profitability, and are adjusting their route networks to better match demand.”