Falling exports and a worsening trade outlook has led to further weakness in air cargo markets, according to latest figures released by the Association of Asia Pacific Airlines (AAPA).
The region’s airlines registered a 7.7% fall in air cargo demand as measured in freight tonne-kilometres (FTK) in July.
The markedly lower demand, coupled with almost flat expansion in offered freight capacity, by 0.4%, led to a 5.2 percentage point decline in the average international freight load factor, to 58.9% for the month.
Trade tensions, alongside deteriorating business confidence levels, contributed to further declines in orders for goods.
Commenting on the results, Andrew Herdman, AAPA director general, said: “By contrast, however, global trade conditions deteriorated further, as higher tariffs disrupted global supply chains, and Asian airlines saw international air cargo demand fall by 6.2% during the first seven months of the year.
"The weakness in air cargo markets is likely to extend into the coming months, unless we see some meaningful progress in trade negotiations.”
However, the report did issue some good news with the number of international passengers carried by the region’s airlines climbing 3.4% higher year-on-year to a combined 32.5 million, even as business sentiment continued to deteriorate in the face of rising headwinds to global growth.
Demand in revenue passenger kilometres (RPK) rose by 2.7% year-on-year, underscoring the relative strength of regional travel markets. A matching 2.7% expansion in available seat capacity led to an average international passenger load factor of 82.4% for the month, unchanged compared to the same month last year.
“The number of international passengers carried by Asian airlines grew by 4.6% to a combined 219 million supported by the availability of competitive airfares and expanding networks," Herdman added. "In addition, sustained expansion in major Asian emerging and developing economies fueled the appetite for international travel.”
Looking to the future, Herdman said the outlook for air passenger travel demand is "still broadly positive", however he issued a warning.
He added: "With growth slowing, the region’s airlines are facing an increasingly challenging operating environment.”