Asia Pacific airlines saw cargo traffic decline in July due to a drop in exports and a bleak trade outlook dampening sentiment in the region’s air cargo markets.

The Association of Asia Pacific Airlines (AAPA) reported that the region’s airlines registered a 7.7% fall in air cargo demand as measured in freight tonne kilometres (FTK).

“The markedly lower demand, coupled with almost flat expansion in offered freight capacity, by 0.4%, led to a 5.2 percentage point decline in the average international freight load factor, to 58.9% for the month,” AAPA said in a statement, noting that “mounting trade tensions, alongside deteriorating business confidence levels” contributed to further declines in cargo volumes.

 AAPA director general Andrew Herdman said that global trade conditions deteriorated further, “as higher tariffs disrupted global supply chains, and Asian airlines saw international air cargo demand fall by 6.2% during the first seven months of the year.”

“The weakness in air cargo markets is likely to extend into the coming months unless we see some meaningful progress in trade negotiations,” he added.

Despite a drop in air cargo volumes, AAPA said international air passenger demand continued to grow in July boosted by both business and leisure travels.

The number of international passengers carried by Asia Pacific airlines increased by 3.4% in July to 32.5 million compared to the same period last year.