Asia Pacific airlines see weaker cargo demand in March

According to the preliminary traffic figures from the Association of Asia Pacific Airlines (AAPA) for the month of March 2012, international air passenger demand showed sustained growth, while international air cargo markets remained weak.

Supported by an improvement in business travel markets, airlines based in the Asia Pacific region carried a combined total of 17.2 million international passengers in March, 10.6% more than in the same month last year. International passenger demand, as measured in revenue passenger kilometre (RPK) terms, grew by 9.4%, whilst available seat capacity expanded by 5.6%, resulting in a 2.7 percentage point increase in the average international passenger load factor to 76.8%.

International air cargo demand, in freight tonne kilometre (FTK) terms, declined by 4.5% compared to the same month last year, a reflection of lacklustre export-import markets. Offered freight capacity contracted by 4.1%, resulting in a marginal 0.2 percentage point fall in the average international air cargo load factor for the region’s carriers to 69.3% for the month.

Commenting on the results, Andrew Herdman, AAPA Director General said, “We’re seeing sustained growth in passenger demand, with Asian airlines carrying 7.6% more international passengers in the first quarter of this year compared to the same period last year, underpinned by robust demand in the Asia Pacific region, and an improving US economy. On the other hand, international air cargo traffic for the first quarter fell by 4.1% year-on-year, reflecting a soft market and lingering concerns over weakening consumer demand, particularly in Europe.”

Herdman added, “The global macro-economic outlook is still overshadowed by the potentially dampening effects of stubbornly high oil prices, and poor growth prospects in Europe, but Asian economies are still delivering robust growth. Nevertheless, airline margins remain under pressure from high fuel costs, focusing attention on further efforts to tightly control costs and carefully match capacity to market demand.”