Association of Asia Pacific Airlines reports slowing growth in March

Results from the Association of Asia Pacific Airlines (AAPA) for March – Growth in cargo traffic measured in freight tonne kilometers (FTKs) slowed to 2.8 percent last month among AAPA’s member carriers, compared to the 13 percent growth in March of 2017.

The 10 percent decrease in growth rate year-over-year is somewhat disconcerting, but the association said carriers are still seeing growth in regional and international demand for movement of intermediate goods and consumer products, “including strong growth in e-commerce shipments.”

On the whole, carriers increased freight capacity by 5.6 percent but saw a decline in space utilized, load factors decreasing by 1.8 percentage points y-o-y to 65.5 percent.

“The airline operating environment remains challenging, with competitive pressures including higher fuel prices and labor expenses,” Andrew Herdman, the director general of AAPA said. “Asia Pacific airlines, therefore, remain focused in striving for cost efficiencies and productivity improvements whilst seeking avenues for further growth.”