Asian cargo growth but yields still squeezed
April traffic figures released by the Association of Asia Pacific Airlines (AAPA) showed encouraging growth in both international passenger and air cargo markets.
July 1, 2014
April traffic figures released by the Association of Asia Pacific Airlines (AAPA) showed encouraging growth in both international passenger and air cargo markets. For the region’s carriers, international air cargo demand in freight tonne kilometres (FTK) increased by 4.7 per cent in April, on the back of sustained demand for Asian exports, AAPA said.
However, freight load factors remained under pressure due to capacity expansion. With offered freight capacity expanding by 5.3 per cent, the international freight load factor averaged 64.3 per cent in April, 0.4 percentage points lower than the same month last year.
Commenting on the results, Andrew Herdman, AAPA director general said: “International passenger traffic demand continued to grow, with the region’s carriers registering a 5.2 per cent increase in international passenger numbers during the first four months of the year.
This was on the back of an improvement in business and consumer sentiment in most economies worldwide. During the same period, air cargo demand for the region’s carriers grew by 4.2 per cent, thanks to an improvement in global trade conditions.” Looking ahead, Herdman added: “The overall demand environment looks positive, underpinned by positive growth in the global economy. However, the region’s carriers continue to face intense competition in the marketplace with signs of overcapacity and the resulting yield pressures.”