Cargo demand for airlines in Asia Pacific ended on a strong note in December as overall demand in 2023 slid 2.8 percent below the previous year, according to the latest figures from the Association of Asia Pacific Airlines.
Air cargo markets entered 2023 weighed by multiple headwinds, but the final months of the year saw demand grow, thanks to an increase in e-commerce shipments. AAPA noted the industry for the past year has been dealing with inflation, a strong US Dollar and government policy dampening trade activity as well as household spending power.
Ending the year strong, international air cargo demand in December jumped 13.2 percent year-on-year, thanks to e-commerce shipments. For the full year offered freight capacity rose by 6.4 percent with more belly space on passenger flights, as the average international freight load factor slipped 5.8 percentage points to 60.7 percent for 2023.
On the passenger side, the region’s airlines saw international demand grow 161.0 percent, driven by strong appetite for travel, as available seat capacity expanded 106 percent and international passenger load factor returned to pre-pandemic levels with an average of 80.9 percent in 2023.
Subhas Menon, AAPA Director General, said that despite 2023 being a ‘good year,’ airlines still faced capacity constraints as operations were progressively restored, in addition to increased cost pressures driven by volatile fuel prices, a strong US Dollar and inflationary impacts on operations.
“2024 promises to be another good year for Asian airlines. International passenger traffic is poised to return to pre-pandemic levels in the coming months, buoyed by the return of tourism and resilient expansion of the region’s economies. However, there remain some uncertainties, including the potential erosion in business and consumer sentiment amid rising geopolitical risks. Against this background, the region’s airlines remain vigilant to market influences while investing for future growth,” Mr. Menon noted.
The AAPA’s membership include Air Astana, Air India, ANA, Bangkok Airways, Cathay Pacific, China Airlines, Eva Air, Garuda Indonesia, Japan Airlines, Malaysia Airlines, Philippine Airlines, Royal Brunei Airlines, Singapore Airlines, Thai Airways and Vietnam Airlines.
