While passenger markets registered growth in November year-over-year, cargo demand remained in decline, traffic figures released by the Association of Asia Pacific Airlines (AAPA) show.
The further growth in demand in international air passenger markets in November was stimulated by the availability of affordable airfares and improvements to connectivity.
On the other hand, demand for air cargo remained subdued in line with weak international trade flows, AAPA said.
The region’s airlines flew 30.3 million international passengers in November, a 3.4% year-on-year increase. The moderate growth reflects the general slowdown in global economic activity. The international passenger load factor averaged 80.1% for the month, after accounting for a 3.6% increase in demand and a 2.6% growth in available seat capacity.
During the first 11 months of the year Asian airlines carried a combined 342 million international passengers, achieving 4.2% growth despite falling business confidence levels and corresponding moderation in economic activity across regions.
“Tourism activity continued to lend support to leisure travel, with growth within the region boosted by the availability of affordable air fares,” Andrew Herdman, AAPA director general, said.
Looking ahead, he said the outlook for air passenger markets is “still reasonably positive,” with expectations of continued moderate expansion in the global economy.
On the other hand, international air cargo demand fell by 1.9% in November year-over-year, as declines in new export orders affected international trade activity. Offered freight capacity increased by 1.2% year-on-year, resulting in a 2.0 percentage point decline in the average international freight load factor to 62.9% for the month.
Air cargo volumes for the first 11 months of 2019 registered a 5.3% decline compared to the same period in the previous year, as challenging business conditions resulting from protracted trade disputes dampened demand.
“Asian airlines were particularly vulnerable, given the region’s importance in the global manufacturing supply chain. The outlook for air cargo demand remains overshadowed by uncertainty over the resolution of ongoing global trade disputes,” said Herdman.
Image by Daria Nepriakhina from Pixabay
