Improved trade boosts cargo volumes for Asia’s airlines and airports

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On both cargo and passenger sides, traffic figures for Asian airlines and airports indicate robust growth in February 2017 as well as in the first two months of the year combined compared to the same periods a year ago.

The Association of Asia Pacific Airlines (AAPA) said the pace of expansion in air cargo markets quickened for regional carriers, with solid increases in demand in February, while international air passenger demand showed continued growth during the month.

Measured in freight tonne kilometers, international air cargo demand for the region’s carriers registered a double-digit growth of 11.3% compared to the same month last year, underpinned by strong growth in new export orders and an acceleration in international trade activity.

Growth in demand outpaced the 1.2% expansion in offered freight capacity by a comfortable margin, resulting in a 5.4 percentage point increase in the average international freight load factor to reach 60.1% for the month, said AAPA.

A total of 24.2 million international passengers flew on the region’s carriers in February, a 2.2% increase year-over-year. In revenue passenger kilometer terms, demand grew by 3.9%, reflecting relative strength on long-haul markets.

Combined with a modest 1.2% expansion in available seat capacity, the average international passenger load factor strengthened by 2.1 percentage points to 80.2% for the month.

Andrew Herdman, AAPA director general, said the combined air cargo numbers for January and February this year indicate a healthy 7.6% increase in demand, “with a boost in demand for air cargo shipments of intermediate and finished goods.”

For passenger services, Herdman observed: “Notwithstanding the distortion in growth comparisons due to the earlier timing of this year’s Lunar New Year festive period, combined figures for the first two months of the year show an encouraging 5.1% increase in the number of passengers carried by the region’s carriers to a combined total of 51 million.”

Looking ahead, he continued, “High levels of business and consumer confidence across most major markets underpin continued optimism for further growth in both air passenger and cargo demand. However, intense market competition, rising fuel and other costs will continue to put pressure on yields. As such, the region’s carriers remain vigilant in seeking further opportunities to enhance growth and increase operational efficiency.”

HKIA saw 7.7% hike in cargo

At the  Hong Kong International Airport (HKIA), cargo throughput experienced strong growth in the first two months of the year, recording a 7.7% increase to 666,000 tonnes from the same period last year. Passenger volume also saw 1% growth to 11.7 million during the period.

The combined robust expansion in cargo throughput at HKIA in the first two months of 2017 was mainly attributable to an 11% year-on-year increase in transshipments. Exports also recorded an 8% growth. Among the key trading regions, traffic to and from North America, Europe, and Southeast Asia showed the most significant increases.

The combined growth of passenger volume in the first two months of 2017 was largely driven by Hong Kong residents’ travel, registering a 6% year-on-year growth. Traffic to and from Japan contributed the most to the surge in passenger traffic in the first two months.

Combining throughput figures for the first two months of 2017 cancels out the effect of the Chinese New Year falling into different months in 2016 and 2017.

In February, cargo volume enjoyed a sharp year-on-year increase of 14.1% to 294,000 tonnes, while passenger volume dropped 3.1% from the same period last year to 5.5 million.

On a rolling 12-month basis, HKIA handled 70.6 million passengers and 4.57 million tonnes of cargo, recording year-on-year increases of 1.7%, and 5.3%, respectively.

Shipments at Changi up nearly 8%

On the other hand, Singapore Changi Airport handled 7.9% more cargo shipments in February 2017 to reach 146,870 tonnes compared to the same period last year.

Passenger movements reached 4.67 million, an increase of 1.5% year-on-year. Passenger traffic for the month remained stable compared to a year ago, which saw travel boosted by the Lunar New Year holidays in February 2016.

Among Changi’s top 10 country markets, India posted the strongest growth of 14% increase—with traffic to Bengaluru, Mumbai, and New Delhi contributing to the growth. Traffic growth to Indonesia and Vietnam was also steady for the month, up 4% in both cases.

Photo: Anthony Bouch