After enjoying a boost in air freight business, this year Asia- Pacific struggling in growth

According to AAPA’s preliminary traffic data report, the growth level is not as remarkable as the air freight boom at the beginning of the year. In the second quarter, freight carriers of Asia –Pacific are showing the respectable rise of 2.9 percent in the freight tonne kilometer (FTK) in year-to-year progress, but the officials are not satisfied with the progress.

Speed of Growth

According to the director general of AAPA, when congestion demand was increased in U.S West Shore sea ports then International air freight companies record an extra growth at the beginning of the year and it continued till last month.

From May, it slows down, although it is growing at a reasonable speed compared to the previous years but it is very low compared to the previous months. In the first five months of the year, almost all Asian airlines showed a 6.3 percent growth in international freight demand.

What AAPA Thinks?

Director General of AAPA said that the growth of air freight markets remains positive while the increase in speed seems to be decreasing. After the unsatisfactory result of 2014, Asian carriers are continuing to struggle for more effective operations and services, while have resolute to improve the total profitability this year. According to AAPA, 9.6 percent increase in passenger kilometer revenue has been recorded, which was a quick growth than the 6.7 percent growth in existing seat capacity.

Herdman, Director General of AAPA talks about the demand in north Asian markets and thinks that it is gradually increasing. The passenger load factor is still positive with a total of 22.9 million passengers carried this year.

Where Asia-Pacific Standing In This Game?

Air freight demand is slowing down since last couple of months. The growth in air freight start reducing in the month of June as an average performance showed by Asia- Pacific carriers. The year-on-year growth halved in June, to 2.3 percent from 4.9 percent in May, but cargo volume was still up by 4.1 percent in the first half. So it is clear that the freight demand is much over than the last year. The Asia –Pacific carriers have been the major beneficiaries of the improved market conditions. While Europe is still doing reasonably well because they are still in recovery mode after the economic crisis couple of years ago.