International air cargo experienced a 5.4% year-on-year increase in demand during August, measured in freight tonne kilometers (FTK). This growth was driven by businesses stockpiling goods to counteract price pressures from tariffs, along with continued strong demand from e-commerce.
Available freight capacity also saw an increase, growing by 5.5% compared to the previous year. This slight overcapacity led to a minor 0.1 percentage point drop in the average international freight load factor, which settled at 59.5%.
Subhas Menon, the Director General of AAPA, commented on these figures, noting the resilience of both passenger and cargo markets despite global challenges. He pointed to protectionist trade policies and persistent supply chain issues as ongoing hurdles for the industry.
Over the first eight months of the year, airlines in the Asia Pacific region transported 258 million international passengers, representing a 10.8% rise from the same period last year. During that same timeframe, international air cargo demand grew by 6.4%. Much of this cargo traffic growth originated from major manufacturing centers in the region, influenced by shifting trade patterns caused by higher tariffs.
Looking forward, Mr. Menon suggested that the immediate outlook for the cargo sector will be influenced by global trade policy changes and inventory management cycles. He also highlighted that ongoing supply chain difficulties and the resulting pressure on operating costs will continue to be significant challenges.
According to Menon, airlines must remain agile to adapt to market demand and maintain strict cost management. He concluded that, overall, Asia Pacific airlines are in a strong position to handle the economic and operational challenges expected in the coming months.