Cargo revenues of Asia Pacific-based international cargo carriers fell by 1.4 percent to US$22 billion in 2011 compared to the previous year.
Similarly, cargo traffic, expressed in freight tonne kilometers, dipped by 4.8 percent for the same year, according to the Association of Asia Pacific Airlines (AAPA).
The Kuala Lumpur-based trade group said overall regional passenger and cargo carriers saw a 47 percent drop in net profits in 2011 to $4.8 billion compared to a record profit of $9 billion achieved in the previous year.
The surge in oil prices and a weak cargo market contributed to the fall in earnings, the AAPA said in a May 2 press statement.
Total revenues for the region’s carriers reached $162 billion in 2011, some 10 percent higher than the $147 billion reported in 2010.
Operating expenses increased by 15 percent to $155 billion, mainly due to a 28 percent surge in fuel costs to $52 billion. The share of fuel costs as a percentage of total expenses rose by 4 percentage points to 34 percent from 30 percent, AAPA said.
Looking ahead, Andrew Herdman, AAPA director general, said, “Airlines around the world are still facing a number of significant challenges in 2012, including the effects of persistently high oil prices, and slower economic growth in the major developed markets… Air cargo markets remain weak, with the result that operating margins remain under pressure.”
Photo: bkaree1
