Asia Pacific airlines saw continued weakness in the air cargo markets during October, with International air cargo demand in freight tonne kilometre terms (FTK) down by 5.9% year-on-year and a decline of 5.6% for the first ten months of 2019.
The Association of Asia Pacific Airlines (AAPA), in its preliminary traffic figures for the month, said that the “slowdown in overall demand for exports continued to weigh on international trade flows”.
While FTKs declined in October, offered freight capacity increased by a marginal 0.1%. As a result, the average international freight load factor fell, by 3.9 percentage points to 61.9% for the month.
AAPA director general Andrew Herdman said: “The first ten months of the year saw Asian airlines carry 312m international passengers, a 4.3% increase compared to the same period last year. On the other hand, air cargo volumes fell by 5.6%, with trade tensions and geopolitical risks dampening business sentiment and export orders.”
Herdman added: “Against a backdrop of a slowing global economy and intense competition, Asian airlines face continued pressure on margins.
“Nevertheless, the region’s carriers remain pro-active in identifying measures to control costs in order to maintain overall profitability, and are adjusting their route networks to better match demand.”