Preliminary traffic figures for the month of July released by the Association of Asia Pacific Airlines (AAPA) showed that international air passenger demand continued to grow moderately, supported by business and leisure related travel. However, falling exports and a worsening trade outlook led to further weakness in air cargo markets.

 

The number of international passengers carried by the region’s airlines climbed 3.4% higher year-on-year to a combined 32.5 million, even as business sentiment continued to deteriorate in the face of rising headwinds to global growth. Demand in revenue passenger kilometres (RPK) rose by 2.7% year-on-year, underscoring the relative strength of regional travel markets. A matching 2.7% expansion in available seat capacity led to an average international passenger load factor of 82.4% for the month, unchanged compared to the same month last year.

 

Mounting trade tensions, alongside deteriorating business confidence levels contributed to further declines in orders for goods. Against this backdrop, the region’s airlines registered a 7.7% fall in air cargo demand as measured in freight tonne kilometres (FTK) in July. The markedly lower demand, coupled with almost flat expansion in offered freight capacity, by 0.4%, led to a 5.2 percentage point decline in the average international freight load factor, to 58.9% for the month.