Asia Pacific airlines saw cargo decline for another month as demand continued to decline against a backdrop of rising global uncertainties.
The Kuala Lumpur-based Association of Asia Pacific Airlines (AAPA) said Asia Pacific airlines saw international air cargo demand — measured in freight tonne-kilometres (FTK) — declined markedly by 13.9% year-on-year in October amid a downturn in export markets for intermediate goods.
In September, AAPA saw a 10.4% year-on-year cargo drop.
"By contrast, air cargo markets moderated even more as a result of multiple headwinds," said Subhas Menon, director general, of AAPA.
"Declining business confidence, against a backdrop of rising risks to the global economy, led to a slowing in orders for manufactured goods, in turn driving a 5.5% year-on-year decline in air cargo demand for the first ten months of the year," Menon added.
Offered freight capacity fell marginally, by 1.2% year-on-year, leading to a 9.6 percentage point fall in the average international freight load factor to 64.7%.
The cargo performance is in contrast with the continued recovery seen in passenger numbers in the region.
AAPA said Asia Pacific airlines recorded a "robust increase" in the number of international passengers — or more than five-fold growth to 62 million compared to the same 10-month period in 2021. This is driven by pent-up demand, even as global economic activity eased noticeably.
Asia Pacific airlines carried a combined total of 12.1 million international passengers in October, an eight-fold increase compared to the 1.4 million in the same month last year. Overall, passenger traffic volumes reached 38.6% of pre-pandemic levels.
Looking ahead, Menon said challenges to Asia Pacific's aviation sector could persist.
"Based on forward booking trends, the outlook for travel remains positive as we approach the final months of the year. While the recovery in air travel is a welcome relief for the industry, the region's airlines are facing a challenging operating environment, as a result of high fuel prices, weak local currencies and manpower shortages," the AAPA chief added.
Earlier, Menon noted that despite ongoing market challenges, the general outlook for air travel in the Asia Pacific in 2023 remains positive.
