July traffic rises above June levels for Asia-Pacific carriers

Most major Asia-Pacific airlines saw cargo traffic improve month over month in July as additional capacity returned to the market from June . Capacity is still significantly down from 2019 levels, however, leading most carriers to report significant traffic decreases from July 2019. [caption id="attachment_69563" align="alignright" width="450"] Photo/China Airlines[/caption] While demand is forecasted to continue trending higher with the approach of the fourth quarter, operational restrictions in the region could hamper the continued improvement of cargo capacity, according to July traffic reports from carriers. China Southern Airlines was the only carrier among Asia-Pacific airlines reporting July cargo traffic to record a month-over-month decline in traffic, declining 11.7% from June to 626 million freight tonne kilometers (FTKs). While the reported traffic also represents a decline from pre-pandemic levels, China Southern’s cargo traffic was down by a modest 2.6% from July 2019. Taiwan-based carriers China Airlines and EVA Air stood apart as the two carriers to record improved cargo traffic from July 2019 levels. China Airlines’ traffic was up 46.1% from July 2019 and up 11.5% from June at 659 million FTKs, while EVA Air’s July traffic was up 52.4% from July 2019 to 427 million FTKs — EVA’s highest monthly cargo traffic reported since July 2011. EVA Air has been a strong performer amid the pandemic, thanks to strong cargo yields, which stood at more than twice pre-pandemic yields for July, at $0.55 per FTK, although down 21% from the peak yields recorded at the height of the capacity crunch in 2020. Capacity also increased for both carriers from June, up 14.5% for China Airlines and 9.4% at EVA. Among those carriers reporting traffic declines from July 2019 is Singapore Airlines with the smallest decline of 10.1% to 492 million FTKs. Traffic still improved from June by 7.7%, while cargo capacity at the airline is more than 40% reduced from 2019 levels. Cargo load factors were up from 2019 across all regions where Singapore Airlines operates. From 2020, cargo load factors were highest for the Americas with a 19.5 percentage point increase to 95.1%, and West Asia and Africa with a 16.8 percentage point increase to 107.3%. Load factors for Europe and the South West Pacific regions has softened since 2020, falling below 90% and 70%, respectively. Air China’s cargo traffic was down 17.2% from July 2019 to 347 million FTKs. The carrier’s July traffic represents a slight increase of 2.3% from June 2021, thanks to an increase in regional traffic. Finally, Cathay Pacific recorded the largest traffic decline since 2019, as July cargo traffic was down 20.8% to 754 million FTKs. July’s results still represent an increase of 13.9% month over month. The airline noted its capacity was up from June 2021 thanks to the full return of its freighter schedule and a 33% increase in passenger freighter flights. “On the cargo side, overall demand is trending upwards despite us entering the traditionally quieter summer months for cargo,” said Cathay Pacific Chief Customer and Commercial Officer Ronald Lam in a statement on the results. “As such, there is good momentum building up as we move towards the cargo peak season.” However, the carrier also warned that its forecast includes substantial uncertainty surrounding potential infection rates and travel restrictions related to the COVID-19 pandemic. Chinese ports and airports have faced closures and operational reductions due to increased cases, with Yantian and Ningbo-Zhoushan ports affected in the past few months. Airfreight from several major Chinese airports has also been affected in August, with airports facing substantial capacity reductions, one freight forwarder based in Hong Kong told Air Cargo World . Beijing’s airports (PEK and PKX), Guangzhou (CAN) and Shanghai (SHA) have all been affected, the forwarder said, and Nanjing Airport (NKG) is currently the most seriously impacted, with all services suspended and local customs operations available on request only.

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