Preliminary traffic data for May 2025, released by the Association of Asia Pacific Airlines (AAPA), indicates continued growth in the region’s air cargo markets. However, the pace of expansion has moderated due to weaker export activity from key manufacturing economies.
Key Performance Metrics
International air cargo demand, as measured in Freight Tonne Kilometres (FTK), increased by 3.0% year-on-year in May. This growth was driven by diversified shipments to alternative markets, which helped offset declining export volumes on the US–China trade route. The latter has been impacted by the removal of tax-free exemptions for low-value goods.
Freight capacity offered by carriers in the region rose by 1.3% compared to May 2024. Consequently, the average international freight load factor increased by 1.0 percentage point to 62.8%.
Industry Commentary
AAPA Director General Subhas Menon noted the dual trends of growth in air travel and tempered gains in cargo markets.
Passenger Growth:
“Air travel demand in the Asia-Pacific region continued to see sustained growth, driven by strong leisure and business traffic,” said Mr. Menon. During the first five months of 2025, Asia-Pacific airlines carried 158 million international passengers, marking a 12% year-on-year increase.
Cargo Performance:
“International freight demand registered 4.5% growth during the same period. This was supported by front-loading of shipments and the rerouting of goods to alternative gateways amidst mounting economic headwinds.”
Challenges and Outlook
Looking ahead, Mr. Menon highlighted a mixed outlook for the region’s carriers:
Air Travel Demand:
“Improvements in air connectivity are expected to sustain growth in travel demand,” he stated.
Operating Environment:
However, carriers face an increasingly challenging landscape shaped by:
Rising trade and geopolitical tensions.
Persistent supply chain constraints.
More frequent airspace closures and overflight diversions due to conflict zones.
Fuel Price Volatility:
Mr. Menon warned that fuel prices could remain unstable, particularly if conflicts in the Middle East persist.
Air Cargo Pressures:
The air cargo market is likely to encounter headwinds from weakening export orders. However, shifts in trade routes may help mitigate some of these pressures.
Despite these challenges, Mr. Menon expressed confidence in the region’s resilience:
“Asia-Pacific carriers are well-positioned to adapt to evolving market conditions, supported by robust regional economies that are growing alongside their aviation markets.”
Source: https://caasint.com/asia-pacific-air-cargo-growth-continues-in-may-amid-export-slowdown/
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