The Association of Asia Pacific Airlines (AAPA) reported healthy growth in 2014 for the cargo and passenger markets, marking the first year of airfreight demand growth for the region’s carriers in the last three years. A strengthening of Asian regional economies, along with increased trade supported by stronger U.S. markets, also helped boost business and leisure travel.
With an upsurge in manufacturing in the region and a corresponding rise in exports, international air cargo was able to rebound, with freight-tonne kilometers (FTK) growing by a strong 5.4 percent compared to 2013.
Available freight capacity grew modestly at 4.1 percent in 2014, which resulted in a 0.8 percent increase in the average international freight load factor to 64.9 percent.
“Air cargo markets experienced a welcome upswing in 2014, with the second half of the year registering 6 percent growth compared to the same period in 2013, following several years of stagnant demand,” said Andrew Herdman, AAPA director general.
Herdman added that the fall in oil prices since the end of 2014 has been “welcomed by many airlines,” although improved profitability will depend on how each airline protects itself from potential loss and limits exposure to debt, due to weaker Asian currencies.