Asia-Pacific airlines recorded higher international air cargo demand in March as supply‑chain disruptions, airspace closures, and operational issues at Middle East hubs forced shippers to reroute Asia–Europe freight.

Preliminary figures from the Kuala Lumpur-based Association of Asia Pacific Airlines (AAPA) showed that freight tonne kilometres (FTK) increased year‑on‑year, supported by stronger demand for time‑sensitive shipments, even as rising capacity pushed load factors slightly lower.

For March, international air cargo demand, as measured in FTK, rose by 2.5% year-on-year in March, supported by an increased demand for timely shipments.

Supply chains were disrupted by the ongoing war in Iran, resulting in cargo flight cancellations and the subsequent rerouting of Asia - Europe cargo flows away from key Middle East hubs.

Offered freight capacity rose by 3.8%, resulting in a 0.7 percentage point decline in the average international freight load factor to 62.3%.

"The aviation industry faced multiple challenges in March, as military conflict in the Middle East led to flight cancellations and a sharp increase in jet fuel prices. Asia Pacific airlines responded swiftly by making network adjustments, including adding flights on key Asia - Europe routes, and trimming unprofitable routes in the face of higher fuel and operating costs. This supported both passenger and cargo demand during the month, bringing first quarter growth to 6.2%, with 102 million international passengers carried, and a 5.7% increase in air cargo demand," said Wong Hong, AAPA Director General.

Amid what initially appeared to be a promising rebound for the aviation sector, emerging global tensions are beginning to cast a shadow over the industry's outlook — and Wong noted that the tension in the Middle East is starting to impact Asia Pacific carriers.

"Tthe impact of the Middle East conflict has begun to weigh on what had been an encouraging start to the year," the AAPA chief said.

"Already grappling with high operating costs due to persistent supply chain issues, airlines are now facing additional strain, with jet fuel prices up by 80% year-on-year to an average of US$156 per barrel in March, compared to US$87 per barrel a year earlier. Fuel remains the single largest cost item for Asia Pacific carriers, accounting for around 30% of total operating expenses."

Looking ahead, Hong cautioned that the industry's recovery remains vulnerable to rising geopolitical uncertainty.

"The duration of the Middle East conflict is going to add uncertainty to the global economic outlook and air travel demand. Against this backdrop, Asia Pacific airlines continue to maintain vigilance over cost controls while maintaining international connectivity," he said

"The region's airlines remain committed to the highest safety standards, and to working closely with governments and industry stakeholders to ensuring safe, efficient and sustainable operations," Hong added.