The Association of Asia Pacific Airlines (AAPA) reported that air cargo demand continued to grow in April fueled by the revival in domestic economies in countries that have begun vaccination rollouts.
The Kuala Lumpur-based organization said air cargo demand in international freight tonne kilometers (FTK) grew by 42% year-on-year in April, achieving volumes slightly above the same period in 2019.
"The acceleration in global trade activity continued to benefit the region’s carriers," AAPA said, adding that offered freight capacity rose by 29.4% year on year, resulting in a 6.7 percentage point increase in the average international freight load factor to 74.8% for the month.
Meanwhile, international passenger markets continued to linger at the "significantly depressed volume" seen since April 2020.
In total, Asia Pacific airlines carried just 1.1 million international passengers in April.
AAPA said although this was an improvement over the same period in 2020 when international passenger volumes plunged precipitously, it represented just 3.5% of passenger volumes recorded in the same month of 2019.
“The emergence of different variants with higher transmissibility rates has deterred Asian economies from reopening their borders, with extended quarantine requirements further suppressing international travel demand,” said Subhas Menon, AAPA Director-General.
He added that bilateral travel corridors offer hope for a recovery, yet remain susceptible to disruptions, as evidenced by the second postponement of the Singapore-Hong Kong travel bubble, reflecting the extremely challenging operating conditions faced by airlines.
Slow vaccination pace in APAC
“In Asia, the relatively slow pace of vaccinations continues to undermine the region’s economic recovery, in particular, the travel and tourism sectors which have been badly hit. Accelerating vaccination rollouts will be key to paving the way for the restart of the travel industry. However, governments are still facing numerous challenges, including supply constraints and logistical issues.”
“Asian airlines continue to play a pivotal role in supporting international efforts to save lives, through the delivery of much-needed medical supplies. However, the majority of the region’s carriers, with their international passenger business severely curtailed, continue to burn through cash every month. Some airlines are undergoing major restructuring, whilst others are raising further equity,” he added.
The AAPA chief noted that “as COVID-19 becomes endemic in society and borders progressively reopen, the collaboration of multiple stakeholders such as governments, airlines, airports and service providers, as well as the implementation of harmonized risk-based measures in accordance with ICAO and WHO guidelines, will be needed to restart international air travel in a smart, safe and sustainable way.”
The ongoing COVID-19 pandemic and surges in transmission across many Asian economies have resulted in renewed border control restrictions as well as domestic lockdowns, quelling hopes of any meaningful resumption in international travel markets.
