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AAPA: ASIA PACIFIC AIRLINES' CARGO GROWTH REMAINS ROBUST IN FEBRUARY
March 29, 2022
Asia Pacific airlines saw air cargo markets remain "robust" in February as ongoing supply chain disruptions continue to push freight on air.
The Kuala Lumpur-based Association of Asia Pacific Airlines (AAPA) said Asia Pacific airlines saw international air cargo demand — measured in freight tonne-kilometers (FTK) — up 0.2% year-on-year in February, with volumes close to 9% above the corresponding month in the pre-pandemic year of 2019.
"International air cargo markets held steady, underpinned by strong consumer and business demand. Ongoing supply chain challenges faced by maritime shipping also supported demand for shipments by air," AAPA said.
Capacity constraints continue
Meanwhile, compared to the upward trajectory in demand, AAPA noted that offered freight capacity expanded by 4.7% year-on-year, resulting in a 3.1 percentage point decline in the average international freight load factor to 69.4% for the month as most passenger flights remain grounded in the region.
"Further expansion in the global manufacturing sector has supported air cargo markets," said Subhas Menon, AAPA Director-General.
The AAPA chief warned, however, of the impending impact of the Russia-Ukraine conflict on Asia-Pacific airlines.
"With the outbreak of war in Ukraine at the end of February, Asian airlines face mounting challenges. Elevated fuel prices, airspace closures, as well as an overall increase in inflationary pressures, will weigh heavily on both passenger and cargo business segments," Menon said.
For the period, APAC airlines saw a combined 2.5 million international passengers traveling on the region’s carriers, only 8.4% of the 30.3 million in the corresponding month of 2019 which AAPA said reflects the "relative strength" of longer-haul markets.
"Preliminary February 2022 traffic figures showed ongoing weakness in international air passenger markets, as the surge in Covid-19 cases as a result of the Omicron variant, continues to hold back any meaningful recovery in demand in the Asia Pacific region," AAPA added.
Moving forward, the easing of restrictions in the region will boost the sector despite continued risks in the market.
"There has been increasing momentum towards the re-opening of borders and easing of travel restrictions in the Asia Pacific region. This is positive news for the region's airlines, which since the onset of the pandemic, have seen demand held back as a result of the repeated imposition of strict border control measures," Menon said.
