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APAC AIRLINES REPORT "SOLID CARGO DEMAND" BOOSTED BY E-COMMERCE GROWTH
September 28, 2021
The Association of Asia Pacific Airlines (AAPA) reported that international air cargo markets remained resilient in August, propelled by ongoing expansion in e-commerce and demand for intermediate goods.
The Kuala Lumpur-based organization said air cargo demand — measured in freight tonne kilometres (FTK) — grew 26.0% year-on-year last month as supply congestion in major exporting ports such as in China increased demand for the transportation of merchandise by air.
AAPA said despite the supportive demand conditions, limited bellyhold space resulting from the low number of flights continued to constrain freight capacity, which saw a comparatively slower 17.8% year-on-year increase.
As a result, the average international freight load factor of 76.0% for the month was close to the historical high achieved in July.
“International travel markets in Asia have been in stasis, whilst gradual recovery has resumed in other regions. Meanwhile, air freight demand continues to drive the region’s airline operations,” commented Subhas Menon, AAPA Director General.
On the other hand, severe weakness in international air travel persisted, as governments maintained strict border control measures amid the escalation in COVID-19 cases across the region.
For the month of August, AAPA said the 1.4 million international passengers carried by the region’s airlines was just 4.0% of the 34 million registered in August 2019, underscoring the continued absence of a revival in demand, in stark contrast to the summer months prior to the onset of this global health crisis.
Menon said “while the spread of the highly contagious Delta variant indicates there is no immediate end in sight to the global pandemic, the acceleration in domestic vaccination roll-outs in a number of Asian economies is a positive step towards the resumption of air travel, as seen in the progressive relaxation of border controls in some countries.”
Nevertheless, he added that vaccination inequity remains a major stumbling block to the reopening of borders in the region, especially in places that have little to no access to vaccines.
“In addition to accelerating access to vaccines, we also call on governments to refrain from unilateral border measures that will only serve to hinder the much needed recovery of air travel and the wider economy,” Menon added.
