Air cargo demand, as measured in freight tonne kilometres (FTK), declined by 8.1% year-on-year in June 2023. By comparison, offered capacity edged 0.7% higher, leading to a 5.9 percentage point fall in the average international freight load factor to 60.7% for the month, as per a communique by the Association of Asia Pacific Airlines (AAPA).
This comes in the background of global trade activity being muted, with the ongoing declines in new export orders. The easing in container shipping rates relative to air freight rates further discouraged demand for air shipments.
Commenting on the results, Mr Subhas Menon, AAPA Director General said, “In the first half of the year… the region’s carriers posted a 10% decline in air cargo demand. A myriad of factors, including a post-pandemic shift in spending from goods to services and higher merchandise prices, weighed on global air cargo markets”.