International air freight demand dipped slightly in July this year from the same month last year in the wake of an Asian export slowdown, said the Association of Asia Pacific Airlines (AAPA), adding that recent economic developments make the global outlook for the rest of the year “uncertain.”
Traffic figures for July released by AAPA, the trade association for scheduled international airlines based in the Asia-Pacific region, showed that global cargo demand dropped 4 percent year-on-year, as orders for Asian exports slowed after last year’s strong rebound. Offered freight capacity matched that of the same month last year, reflected in a 2.9 percentage point decline in the average international freight load factor to 66.9 percent.
On the other hand, international air passenger travel held on for a steady growth. Collectively, airlines based in the Asia-Pacific region flew a total of 17.4 million international passengers in July, a 5.2 percent increase compared to the same month last year.
“Airlines have seen only modest revenue growth this year as a result of slightly slower than expected growth in the passenger business, and a lackluster air cargo market,” said Andrew Herdman, AAPA director general. “At the same time, high oil prices have seen jet fuel averaging $130 per barrel, compared to $90 in 2010. As a result, airline margins have been severely squeezed, with profitability suffering accordingly.”
Although economic growth in Asia remains positive, recent signs of a further slowdown in the US and Europe are a cause for concern, Herdman said, adding further uncertainty to the global outlook for the rest of the year. He said the outlook for future growth remained positive, however, based on ambitious fleet expansion plans and the establishment of a number of new airlines.
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