Preliminary May 2025 traffic figures released by the Association of Asia Pacific Airlines (AAPA) showed that air cargo markets posted further gains, although the pace of growth moderated due to weaker export activity from key manufacturing economies.
International air cargo demand, measured in freight tonne kilometres (FTK), grew by 3.0% year-on-year in May. Weaker export volumes on the US-China route, partly due to the removal of tax-free exemptions for low-value goods, were offset by increased shipments to other markets. Offered freight capacity rose by 1.3% year-on-year, resulting in a 1.0 percentage point increase in the average international freight load factor to 62.8% for the month.
International freight demand registered 4.5% growth, supported by frontloading of shipments and rerouting of goods to other gateways amidst mounting economic headwinds.
However, Asia Pacific carriers face an increasingly challenging operating environment, shaped by rising trade and geopolitical tensions, persistent supply chain constraints, and more frequent overflight diversions due to airspace closures in conflict zones. In addition, fuel prices may remain volatile if the Middle East conflict prolongs. Meanwhile, air cargo markets are expected to come under pressure from weakening export orders, although shifts in trade routes could help mitigate some of the impact. Overall, the region’s carriers are well-placed to adapt to evolving market conditions, supported by strong regional economies that are expanding in tandem with their aviation markets.”