Airlines in the Asia Pacific region sustained their growth trajectory in February, albeit at a more moderate pace, driven by continued e-commerce activity.

However, risks persist due to market uncertainties, including the rise in protectionism, which dampens broader business sentiment.

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 by 2.8% year-on-year in February.

AAPA said the "more modest" growth was driven by a slowdown in export activity across the major manufacturing hubs, notably China, during the festive celebrations.

February's performance was slower than the 4.7% year-on-year growth seen at the start of 2025.

Offered freight capacity increased by 6.0% in February, outpacing the growth in demand to result in a 1.7 percentage point decline in the average international freight load factor to 56.5% for the month.

 [Source: Association of Asia Pacific Airlines]

"In the first two months of the year ... international air cargo demand increased by 4% year-on-year, supported by higher demand for consumer and intermediate goods," said Subhas Menon, AAPA director general.

Looking ahead, the AAPA chief warned of growing uncertainties in the air cargo sector amid escalating geopolitical and trade tensions among the world's biggest economies and trading partners.

"Overall, airlines are expected to continue to benefit from sustained travel demand and growth in air shipments as a result of ongoing expansion in e-commerce activity. However, the region’s carriers are facing headwinds, particularly as rising costs, driven in part by fleet capacity constraints, continue to exert pressure on revenue," Menon said.

"The recent rise in protectionist sentiment also presents potential challenges to trade and broader business activity," he added.

Menon noted that in response, Asian airlines are maintaining a "cautious stance," closely monitoring evolving operating conditions while actively exploring opportunities in high-potential growth markets.