Asia Pacific Air Cargo Gathering Speed

Andrew Herdman, director general of the Association of Asia Pacific Airlines, (AAPA) says international freight markets saw 3.8 percent growth in traffic during the first quarter of 2014.

Boosted by stronger export markets, Asia Pacific carriers saw growth in international cargo traffic in March year over year, according to preliminary traffic figures released by the Association of Asia Pacific Airlines (AAPA).

The region’s airlines had a 6.7 percent increase in international freight demand. Offered freight capacity grew by 5.9 percent, and consequently the average international air cargo load factor for Asia Pacific carriers edged 0.5 percentage points higher to 68.4 percent, the first increase seen in over a year.

“International freight markets saw an encouraging 3.8 percent growth in traffic [for the first quarter of the year], with further evidence of a pick-up in international trade, leading to stronger demand for Asian exports,” Herdman says.

Herdman allows, however, that Asian carriers continue to face a challenging operating environment marked by increased competition pressuring yields, while on the cost side of the equation many carriers have been adversely affected by volatile currency markets.

Nevertheless, the overall demand outlook remains broadly positive, driven by expectations of further improvements to global economic conditions, including a long awaited recovery in international trading activity.

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