Asia Pacific airlines recorded another month of cargo decline in August — prolonging the downtrend to 18 consecutive months.

Traffic figures released by the Kuala Lumpur-based Association of Asia Pacific Airlines (AAPA) showed international air cargo demand — measured in freight tonne-kilometres (FTK) — saw a slight 1.8% year-on-year fall in August when compared to the subdued volumes recorded in the same month last year.

"Renewed declines in export orders prolonged the decline in air cargo markets," AAPA said in a statement.

The decline in August marked the 18th month of air cargo market decline in the Asia Pacific.

August's air cargo performance follows a 0.6% year-on-year decline in July. In June, it fell 8.1% year-on-year after a 7% year-on-year drop in May 2023.

Asia Pacific airlines also recorded a 5.5% decline in April, 10.9% year-on-year in March, a 9.8% decline in February, and a steeper 20.5% year-on-year decline recorded in January this year. For the full year 2022, Asia Pacific airlines saw air cargo demand also drop by 8.2%.

The international freight load factor remained under pressure, recording a 6.6 percentage point decline to an average of 58.8% for the month, after accounting for a 9.2% year-on-year expansion in offered freight capacity.

"On the other hand, the same period saw Asian airlines record a 7.6% decline in international air cargo demand, reflecting prevailing weakness in international trade flows,"  Subhas Menon, AAPA director-general.

"In addition, the normalisation of container shipping rates affected demand for air shipments of non-time-sensitive goods," he added.

 [Source: AAPA]

Looking ahead, Menon said, "forward booking trends indicate resilient travel demand in the coming months", but airlines are facing higher costs, driven by inflation and the recent rise in jet fuel prices, which threaten to squeeze margins.

"Delays in aircraft deliveries and parts shortages may affect airline fleet deployment plans," he added, noting that competition is also intensifying in tandem with the increase in capacity globally.

"Asian airlines remain focused on efforts to increase productivity as the industry strives to return to profitability following three consecutive years of heavy losses," Menon added.