Asia Pacific airlines continued to record air cargo growth in February, with e-commerce demand driving the expansion, according to a new report by the Kuala Lumpur-based Association of Asia Pacific Airlines (AAPA).

Traffic figures released by AAPA showed that international air cargo demand —as measured in freight tonne kilometres (FTK) — recorded a 10.2% year-on-year increase in February, extending the rebound seen in the last quarter of 2023.

"With inflation levels moderating, rising demand spurred renewed vigour in the global manufacturing sector, supporting further growth in air cargo markets," AAPA said.

 [Source: AAPA]

It added that offered freight capacity expanded by 20.8%, primarily from growth in belly-hold space.

Consequently, the average international freight load factor fell by 5.5 percentage points to 57.3% for the month.

"During the first two months of the year, Asian carriers ... saw a 16% increase in international air cargo demand, progressing the recovery recorded since the last quarter of 2023," said Subhas Menon, director-general of AAPA.

"Healthy growth in e-commerce transactions fuelled a rise in demand for speedier air transport. Additionally, there were also indications of a modal shift from sea to air due to the Red Sea crisis," he added.

Asia Pacific airlines recorded a strong 22.5% year-on-year increase in January, propelled by demand related to the festive Lunar New Year season.

Airlines in the region saw cargo volumes decline 2.8% in 2023 as the industry faced multiple headwinds last year, including inflation, a strong US Dollar, government policy dampening trade activity, and household spending power, although freight numbers ticked in December.

Looking ahead, Menon signalled optimism for the aviation industry in Asia Pacific, noting continuous growth in both passenger and cargo volumes.

"The upturn in global economic activity and rise in business confidence levels augurs well for air cargo markets in the coming months," he said. "Correspondingly, the demand outlook for international travel is positive based on forward booking trends."

Menon noted that the region's carriers remain "nimble and proactive" in exploring new avenues of growth whilst at the same time tackling numerous challenges, including rising operational costs and stiff competition.