Aggregated cargo revenue for Asia Pacific airlines dropped significantly by 43.3% to $21 billion last year, according to preliminary financial results from the Association of Asia Pacific Airlines (AAPA). The decline was driven by weakened trade activity and lower cargo rates, reflected in a 41.7% drop in cargo yields to 33.6 US cents per freight tonne kilometre (FTK). However, AAPA noted that average cargo yields remained above pre-pandemic levels.
The AAPA had previously reported a decline in air cargo demand for Asia Pacific airlines in 2023, citing economic constraints and reduced rates as key factors. International air cargo demand, measured in FTKs, experienced a 2.8% annual decline due to inflationary pressures, a strong US Dollar, and a consequent downturn in the demand for goods.
Contrastingly, passenger market revenues in the region showed a strong rebound. The lifting of the final pandemic-induced travel restrictions led to a resurgence in travel demand in 2023, resulting in Asia Pacific airlines achieving operating revenues of $198 billion—a 54.8% increase from $128 billion in 2022. Passenger revenue more than doubled, increasing by 105.4% to $151.5 billion, driven by strong growth in passenger demand.
Despite this growth, there were challenges. Passenger yields declined by 6.7% to 8.6 US cents per RPK due to the steady increase in capacity. Additionally, operating expenses, including fuel costs, rose.
Looking forward, air cargo demand in the region has increased in 2024. AAPA director general Subhas Menon expressed a positive outlook for Asian airlines, citing strong global demand for air travel and resurgent growth in international air cargo markets. However, he also highlighted ongoing challenges, such as delayed deployment of additional capacity due to supply chain constraints and persistent cost pressures.