CARGO OPERATIONS "LIFELINE" FOR APAC AIRLINES DURING THE PANDEMIC

The Association of Asia Pacific Airlines (AAPA) reported that international air cargo markets remained resilient in November, propelled by the recovery of the manufacturing sector in the region as well as strong year-end export orders.

The Kuala Lumpur-based organization said air cargo demand — measured in freight tonne kilometres (FTK) — grew 16.5% year-on-year in November after already recording a 22.3% year-on-year growth in October, which AAPA said that time was "another month of vigorous growth in international air cargo demand."

For the region’s airlines, international air cargo demand, in freight tonne kilometre (FTK) terms, grew by 16.5% year-on-year in November, staying above volumes recorded in the pre-pandemic months of 2019.

"With COVID-19 cases stabilising amidst rising vaccination rates across the region, improving manufacturing conditions and strong year-end export orders resulted in another month of robust growth in international air cargo markets," commented Subhas Menon, AAPA Director General.

Cargo: "lifeline" for APAC airlines

The international freight load factor remained elevated, averaging 73.2% for the month, after accounting for an 11.8% year-on-year expansion in offered freight capacity.

"The resilience of the cargo sector continues to be an important lifeline for the region’s airlines during this pandemic," Menon added.

Nonetheless, the AAPA chief noted that oil prices have risen significantly, with jet fuel prices averaging US$92 per barrel in November, almost double of the corresponding month in 2020, "adding to the challenges airlines face in a bid to restore profitability."

Meanwhile, APAC airlines reported improvement in international air travel as some regional governments began to relax the strict border restrictions imposed since the onset of the COVID-19 pandemic.

However, the emergence of the highly infectious Omicron variant in late November has since raised uncertainty over recovery prospects.

It said overall volumes remain significantly depressed as the 1.6 million international passengers carried by the region’s airlines in November was just 5.2% of the corresponding pre-pandemic month in 2019.

"For the first eleven months of the year, international passenger volumes were 4% of the same period in 2019. Although overall traffic volumes remain significantly depressed compared to pre-pandemic levels, the recent relaxation of some border restrictions and establishment of vaccinated travel lanes are welcome moves towards the restoration of international air travel in the region," Menon said.

"Overall, full restoration of international air travel remains some way off. The abrupt re-imposition of travel restrictions by many governments in the face of the rising spread of the Omicron variant threatens to hold back the long-awaited revival of Asia’s travel and tourism industry," he added, noting that collaboration and coordination of industry stakeholders across borders are critical to the safe and sustained resumption of international air travel.

"Without which, the recovery journey will likely be volatile and uneven," the AAPA chief added.