AAPA: volume grew 4 percent in 2018, but flattened at year end

The Association of Asia Pacific Airlines (AAPA) released its end of the year results, which show that between 2017 and 2018, member airlines’ cargo volumes increased by 4 percent.

However, any year-over-year growth in 2018 wasn’t thanks to the fourth quarter, which is normally peak season for air cargo demand. In December, traffic declined by 0.7 percent – from 6,381 to 6,337 freight tonne kilometers (FTKs) – compared to the same month in 2017.

AAPA director general Andrew Herdman pointed to poor business confidence, particularly in the global manufacturing sector, and reiterated the effects of trade tensions that hit member carriers’ trans-Pacific routes – which are normally at their busiest during the months approaching the holiday season.

The outlook for 2019 is a bit fuzzy, but it’s safe to say that the growth spurt in demand for air cargo has died down for the foreseeable future, AAPA concluded.

“Whilst expectations of continued moderate growth in the global economy should lend further support to travel markets in the coming months, there are some downside risks, including weakness in trade activity and potential erosion in business and consumer sentiment,” Herdman predicted. “The region’s airlines are alert to such factors, which may affect the market environment, but remain focused on cost management and investing in future growth opportunities.”