Weaker global manufacturing growth led to slower air cargo demand for Asia Pacific carriers in June, according to figures released by the Association of Asia Pacific Airlines (AAPA).
The region’s carriers recorded a 3.4 per cent year-on-year (YOY) increase as measured in freight tonne kilometres (FTK) for the month, a more moderate rate compared to previous months, but AAPA said it was “in line with underlying trade conditions”.
The average international freight load factor declined by 1.9 percentage points to 64.5 per cent in June, on the back of a 6.4 per cent expansion in offered freight capacity.
In May, AAPA reported FTKs rose 4.9 per cent YOY while the average international freight load factor came in at 64.2 per cent.
AAPA director general, Andrew Herdman said: “International air cargo demand registered an encouraging 5% increase, bolstered by further expansion in the manufacturing sectors, although growth in new export orders has slowed in recent months.”
Looking ahead, Herdman said: “Global economic prospects remain positive, anchored on expectations of firm domestic demand across regions, despite some concern over the possible adverse effects of trade tariffs.
“Airfares are edging higher reflecting the impact of higher fuel prices this year, but demand conditions remain relatively favourable. Overall, Asian carriers continue to explore new avenues to optimise revenue growth, in order to maintain margins.”