Tough economy hits Asia Pacific 2023 cargo revenue
18 / 06 / 2024
Photo: Jaromir Chalabala/ Shutterstock
Aggregated cargo revenue for Asia Pacific airlines last year fell by 43.3% to $21bn, according to preliminary financial performance results released by the Association of Asia Pacific Airlines (AAPA).
This was driven by weakness in trade activity and lower rates, as reflected in the 41.7% drop in cargo yields to 33.6 US cents per freight tonne kilometre (FTK), said the AAPA.
Despite the decline, the AAPA noted that average cargo yields remained above pre-pandemic levels.
The AAPA previously said Asia Pacific airlines saw air cargo demand drop in 2023 due to economic constraints and reduced rates.
International air cargo demand, measured in FTKs, saw a 2.8% annual decline.
This was “driven by inflationary pressures, a robust US Dollar and consequent downturn in the demand for goods”.
In contrast, passenger market revenues in the region rebounded.
Following three consecutive years of losses, the lifting of the final remaining pandemic-induced travel restrictions facilitated the resurgence of travel demand in 2023.
Asia Pacific airlines achieved operating revenues totalling $198bn, a 54.8% jump compared to the $128bn recorded in 2022. Combined passenger revenue more than doubled, by 105.4% to $151.5bn, driven by the sturdy growth in passenger demand.
However, it wasn’t all good news. Reflecting the steady increase in capacity, passenger yields declined by 6.7% to 8.6 US cents per RPK. Plus, operating expenses, including fuel, rose.
Air cargo demand in the region has risen so far in 2024 and looking ahead, AAPA director general Subhas Menon said: “The outlook for Asian airlines is generally positive, as demand for air travel globally continues to be strong, complemented by resurgent growth in international air cargo markets.”
He added: “The region’s carriers continue to face numerous challenges, including delayed deployment of additional capacity due to supply chain constraints and persistent cost pressures.”
