If months of double-digit growth during 2017 weren’t sufficiently convincing, the Association of Asia Pacific Airlines (AAPA) released final numbers for the year, showing how airlines based in the region saw demand in freight tonne kilometers (FTK) rise 9.8 percent, compared to 2016.
Strong year-over-year FTK growth of 7.5 percent in December capped off a great year for Asia-Pacific airfreight. Increases in demand also continued to outpace capacity expansions through the end of the year, and annual load factors rose by 3.2 percentage points, y-o-y, to 65.2 percent for 2017.
“Asian airlines enjoyed solid increases in air cargo volumes through the year, with continued improvements in business conditions boosting trade activity, as demand was transmitted through regional supply chains,” said AAPA director general Andrew Herdman. However, margins were kept under pressure in 2017 as costs – particularly for jet fuel – also rose.
The AAPA expects the good times to continue in 2018, “as the increase in new orders and a recent pick-up in business investments are expected to enhance the sustainability of the global economic upswing,” Herdman continued, before cautioning that “market conditions remain highly competitive.” To continue to achieve last year’s levels of success, he advised, airlines will have to continue pursuing new revenue sources while controlling costs.
Interested in learning more about the future prospects of the airfreight industry? Then join us at Cargo Facts Asia 2018, where senior executives from all branches of the industry will share their views about what to expect in 2018 and beyond.
Cargo Facts Asia will be held Apr. 23-25, at the Mandarin Oriental Pudong in Shanghai. For more information, or to register, visit www.cargofactsasia.com