Cargo airlines based in the Asia-Pacific region continued to feel the impact of weak global markets in April, said the Association of Asia Pacific Airlines (AAPA).

International air cargo traffic, measured in freight tonne kilometers (FTK), registered a 7.6 percent decline last month compared to the same month last year, reflecting continued weakness in demand. Even with a 4.8 percent reduction in offered freight capacity, the average international air cargo load factor fell by 2 percentage points to 66.3 percent for the month, said AAPA.

“International air freight markets remain depressed, with Asian airlines recording an overall 4.8 percent decline in cargo traffic for the first four months of the year, exerting further downward pressure on rates, despite reductions in offered freight capacity,” said Andrew Herdman, AAPA director general.

He added: “We’re still seeing welcome growth in passenger demand, but airline profit margins have suffered as a result of the weak cargo market, and the impact of stubbornly high oil prices. Although key Asian economies are still performing relatively well, the operating environment remains challenging, clouded by uncertainties over prospects for the global economy.”

 

Photo: ZK-NGJ

You May Also Like

Malaysia’s Samalaju deep-sea port project gets $164 million in funding

The Sarawak state of Malaysia has approved the release of $164.5 million to finance the Samalaju deep-sea port project in Bintulu town. The fund…

Hapag-Lloyd carved $22-M profit in Q3 due to cost cutting

Despite what it described as the industry’s “irrational behaviour” that was causing freight rates to free-fall, Hapag-Lloyd reported a profit for the second consecutive…

Three PH ports to get P500M upgrade

The Philippine Department of Transportation and Communications (DOTC) is allotting P500 million for the construction and upgrade of the Ormoc, Tabaco City in Albay,…

Key international airports next recipients of scanners

THE Bureau of Customs (BOC) will soon provide scanners to key airports. The move mirrors what has been done for the water sector. BOC…