AsPac carriers post biggest drop in air freight volume in March

MANILA, Philippines - Asia-Pacific based carriers continue to see a significant decline in air freight volumes in March due to subdued growth in global trade, the International Air Transport Association (IATA) reported.

Latest data from IATA showed that Asia-Pacific carriers witnessed a 5.2 percent drop in volumes measured in freight tonne kilometers (FTKs).

“The most significant fall in demand was reported by carriers in Asia-Pacific and North America. Combined they account for around 60 percent of global freight traffic,” IATA director general and chief executive officer Tony Tyler said.

Tyler added that the decline was exacerbated by the effects of last year’s US seaport disruption which fueled strong demand for the region’s carriers.

According to IATA, Asia Pacific carriers face wider headwinds from the weak trade backdrop in the region as export volumes from emerging Asia have fallen in 11 of the past 12 months.

Meanwhile, global air freight volumes fell by two percent year on year in March, owing to stagnant growth in world trade.

“It is shaping up to be another tough year for air cargo. The combination of fierce competition, capacity increases and stagnant demand makes this a very difficult environment in which to generate profits,” Tyler said.

Airlines in Latin America also decreased by almost six percent as a reflection of the challenging economic conditions in the region particularly in Brazil.

African airlines, which carry a small part of worldwide FTKs, recorded a 3.1 percent decrease in March year-on-year and continue to struggle in the market.

North American carriers, likewise, saw a 1.8 percent decline in volumes in March due to the rollover effect of the US port strike last year, drop in global trade and a strong US dollar dampening exports.

On the other hand, Middle Eastern carriers maintained strong growth with volumes expanding by 2.4 percent despite a marked slowdown in network expansion of the region’s main airlines and weak trading conditions.

Demand for European carriers grew 1.3 percent, but IATA said volumes have yet to break out of the sideways trend as weak cargo demand is a continuing story for the region.