AAPA: Strong growth but demand starting to fall

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Cargo demand experienced strong growth across Asia Pacific in 2018 but slowed down significantly at the end of the year, the Association of Asia Pacific Airlines (AAPA) reports.

Demand measured in freight tonne kilometres (FTK) was up 3.9% in 2018 to 73.2 billion, but was down 0.7% in December to 6.3 billion due to slower exports and increasing uncertainty over international trade policies.

Capacity in available FTK was up 6.6% in 2018 to 115.7 billion and by 5.1% in December to 10.2 billion, pushing load factors for the year down 1.6 percentage points to 63.3% and by 3.6 percentage points to 62.1% in December.

Andrew Herdman, AAPA director general says: “Whilst international air cargo demand recorded an encouraging 3.9% increase for the full year, growth slowed significantly in the closing months of the year as business confidence in the global manufacturing sector weakened in response to trade policy tensions.”