Protracted trade disputes continued to weigh on Asian carriers’ cargo business in November with volumes down 1.9 per cent, says the Association of Asia Pacific Airlines (AAPA).
With Asian carriers “particularly vulnerable,” given the region’s importance in the global manufacturing supply chain, AAPA director general Andrew Herdman says the outlook for air cargo demand “remains overshadowed by uncertainty over the resolution of ongoing global trade disputes.”
International air cargo demand for November, in freight tonne kilometre terms (FTK), for Asian carriers fell by 1.9 per cent year-on-year, as declines in new export orders affected international trade activity.
Offered freight capacity increased by 1.2 per cent year-on-year, resulting in a 2.0 percentage point decline in the average international freight load factor to 62.9 per cent for the month.
Commenting on the results, Andrew Herdman, AAPA director general says: “Air cargo volumes for the first eleven months of 2019 registered a 5.3 per cent decline compared to the same period in the previous year, as challenging business conditions resulting from protracted trade disputes dampened demand.”
Looking forward, Herdman adds: “The outlook for air passenger markets is still reasonably positive, with expectations of continued moderate expansion in the global economy. Meanwhile, the region’s carriers remain vigilant in monitoring and responding to changes in market conditions, whilst seeking new growth opportunities.”
Asian airlines carried a combined 342 million international passengers during the first eleven months of the year, achieving 4.2 per cent growth despite falling business confidence levels and corresponding moderation in economic activity across regions.