Asia Pacific airlines are off to a solid start in January, according to a new report by the Kuala Lumpur-based Association of Asia Pacific Airlines (AAPA), and air cargo showing continuing growth in the first month of 2024.

Traffic figures released by AAPA said international air cargo demand — as measured in freight tonne kilometres (FTK) — recorded a strong 22.5% year-on-year increase for the month, extending the rebound seen in the last quarter of 2023.

"January saw a continuation of growth in air cargo markets, propelled by demand related to the festive Lunar New Year season," AAPA said.

 [Source: Association of Asia Pacific Airlines]

"Nevertheless, growth in offered freight capacity continued to outpace demand, driven by the ongoing recovery in belly-hold capacities of international passenger operations," it added.

For the month, AAPA noted that offered freight capacity rose by 25.8% year-on-year, leading to a 1.6 percentage point decline in the average international freight load factor to 57.5%.

"The year started on a positive note for Asia Pacific airlines, as both international air passenger and cargo markets saw robust growth, supported by the timing of the Lunar New Year festive period," said Subhas Menon, director-general of AAPA.

He added that cargo markets benefitted from heightened demand for air shipments ahead of the festive period.

Asia Pacific airlines saw cargo volumes as a whole declined 2.8% in 2023 as the industry faced multiple headwinds last year including inflation, a strong US Dollar and government policy dampening trade activity, as well as 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 upcoming year looks broadly positive for Asian carriers, given the renewed optimism on the global economic outlook. However, as capacity restoration progresses, airlines face intensifying competition," he said.

"In addition, the cost environment remains challenging, as inflationary pressures continue to be felt amid ongoing supply chain issues. Nevertheless, airlines remain pro-active in seeking new growth opportunities, while maintaining the highest safety and customer service standards," the AAPA director-general, added.