Asia Pacific air cargo volumes drop in April

Kuala Lumpur, Malaysia-Preliminary traffic figures for the month of April released by the Association of Asia Pacific Airlines (AAPA) showed a slight increase in international passenger demand, whilst international air freight markets recorded small declines, reflecting a trend of moderating growth and the lingering effects of the Japanese earthquake. Asia Pacific airlines carried a total of 15.0 million international passengers in April, 1.6% more than in the same month last year.

International passenger traffic measured in revenue passenger kilometers (RPKs) grew by 4.5%, reflecting relatively strong demand on long haul international routes. The average international passenger load factor for the month was 2.1 percentage points lower, at 75.0%, as a 7.4% expansion in available seat capacity outpaced the growth in demand.

Air cargo traffic demand fell slightly, with international freight tonne kilometers (FTK) 2.0% lower compared to levels seen in the same month last year. Coupled with a 2.1% increase in available freight capacity, the average international freight load factor for the month declined by 2.9 percentage points to 68.5%.

Commenting on the results, Mr. Andrew Herdman, AAPA Director General said, Air passenger numbers for the month of April held up pretty well, despite the sharp falls in demand seen on Japanese routes, which normally account for about a fifth of traffic in the Asia Pacific region. Growth in passenger traffic for the month was underpinned by stronger demand on long-haul international routes. On the other hand, air cargo demand was relatively soft in April, falling by 2% in FTK terms.

Mr. Herdman added, During the first four months of the year, the number of international passengers carried by Asia Pacific based airlines grew by 3% compared to the corresponding period in 2010, whilst international freight traffic matched last year s levels. Growth rates so far this year have been modest, and are likely to remain subdued in the second quarter as a result of the after-effects of the earthquake and tsunami in Japan, but will hopefully pick up again in the second half of the year.

Mr. Herdman concluded, Despite recent events, the global economic outlook still remains broadly positive. However, with demand currently falling short of planned capacity growth, and sharply higher fuel costs as a result of persistently high oil prices, airlines are facing further pressure on already thin margins, reiterating the need to strictly control costs throughout the business.
<Korea Shipping Gazette>