Preliminary traffic data for February 2025, released by the Association of Asia Pacific Airlines (AAPA), indicates a slowdown in air cargo demand growth, primarily attributed to a decline in export activity during the month.
Cargo Demand and Capacity
International Air Cargo Demand: Measured in freight tonne kilometres (FTK), demand grew by 2.8% year-on-year (YoY) in February, reflecting reduced export activity across major manufacturing hubs, particularly China, during festive celebrations.
Freight Capacity: Offered freight capacity increased by 6% YoY, surpassing demand growth. This led to a 1.7 percentage point decline in the average international freight load factor, which stood at 56.5% for the month.
January Performance
In contrast, January 2025 figures showed a stronger 4.7% YoY growth in international air cargo demand.
Cumulative Results for 2025
Commenting on the overall performance for the first two months of the year, Subhas Menon, Director General of AAPA, noted that international air cargo demand increased by 4% YoY, driven by heightened demand for consumer and intermediate goods.
Outlook and Challenges
Menon emphasized both opportunities and challenges for the region's airlines:
Opportunities: Sustained travel demand and the continued expansion of e-commerce activity are expected to support growth in air shipments.
Challenges:
Rising Costs: Fleet capacity constraints and other factors are contributing to increasing costs, placing pressure on airline revenues.
Protectionist Sentiment: The rise in global protectionism poses potential risks to trade and broader business activities.
In response to these challenges, Asian airlines are adopting a cautious approach. “Carriers are closely monitoring evolving operating conditions while actively exploring opportunities in high-potential growth markets,” Menon explained.
While the start of 2025 has been marked by positive overall growth, Asia Pacific airlines must navigate a complex landscape of rising costs, geopolitical risks, and shifting market dynamics. Adaptability and a focus on emerging opportunities will be critical to sustaining long-term growth in the region.
Source: https://www.aircargonews.net/airlines/growth-slows-for-asia-pacific-airlines-in-february/1079865.article
Average worldwide air cargo rates regained a further +4% in the third full week of March, taking them back to around their levels in mid-January and last summer, as the market...
The latest data from the TAC Index highlights a continued rally in global air freight rates, despite a mixed outlook for international trade and markets.
Recent insights from Freightos reveal a consistent decline in container shipping rates originating from Asia, with current levels falling below the lowest points recorded...
Global air cargo rates and demand witnessed modest increases during the second full week of March, according to the latest weekly figures from WorldACD Market Data.
Global air cargo rates and demand edged slightly further upwards in the second full week of March, with Middle East & South Asia (MESA) the only major origin region registering...
Lufthansa Cargo projects that the air cargo market will experience growth in 2025, even as geopolitical events and economic uncertainties fuel ongoing market volatility. The...
The latest chapter in the Trump administration’s tariff saga has once again disrupted global trade. Recent announcements of sweeping trade barriers targeting Canada, Mexico,...
The air cargo industry, deeply connected to global trade dynamics, has faced increasing volatility in recent years, resulting in significant financial repercussions. It is...
Xeneta had initially predicted a 4% to 6% year-over-year increase in global air cargo demand for 2025 following a year of double-digit growth. However, trade uncertainty has...
ALS