Airlines in the Asia Pacific region sustained their growth momentum at the start of 2025,  despite growing market uncertainties that could dampen the sector's outlook this year.

Traffic figures released by the Kuala Lumpur-based Association of Asia Pacific Airlines (AAPA) showed that international air cargo demand — measured in freight tonne-kilometers (FTK) — was up 4.7% year-on-year in January 2025.

"Despite growing uncertainties in the broader trade environment, air cargo markets also sustained growth in the new year [with] higher demand for consumer goods in anticipation of the festive season," AAPA said in a statement.

During the period, the expansion in belly-hold space drove a 10.9% year-on-year increase in offered freight capacity.

Meanwhile, the average international freight load factor dipped 3.3 percentage points to 55.2% for the month.

"The relatively high load factors reflect strong demand but also ongoing capacity constraints, compounded by the grounding of aircraft due to engine issues and delays in aircraft deliveries," said Subhas Menon, AAPA Director General.

"These challenges have contributed to an increase in expenditure on maintenance, aircraft leasing, and labour, while greater competition saw to lower yields and operating margins," he added.

Looking ahead, the AAPA chief said growth prospects remain promising in the coming months against a backdrop of steady expansion in global economic activity. "However, ongoing geopolitical and trade tensions pose potential risks to both business sentiment and consumer demand in the months ahead."

"The region's airlines are closely monitoring developments whilst carefully managing costs to boost operating economics," Menon added.

APAC airlines closed 2024 on a high note, bouncing back from two years of decline, as robust e-commerce activity and disruptions in maritime shipping led to increased air cargo volumes.

International air cargo demand last year rebounded with a solid 14.9% increase in cargo volumes for the year.