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Sea-air shift and diverse trade fuels August air cargo demand

By Rebecca JeffreyRebecca Jeffrey30 September 2025

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Global air cargo volumes were driven by a sea-to-air modal shift and route diversions away from North America as shippers navigate evolving US tariff policies

Jaromir Chalabala/ Shutterstock 2/03/2022

Photo: Jaromir Chalabala/ Shutterstock

August marked the sixth consecutive month of year-on-year growth for the air cargo market, helped by a sea-air shift and growth away from North America in the face of US tariffs.

Total demand, measured in cargo tonne-km (CTK), rose by 4.1% compared with August 2024 levels, said IATA.

Although growth slowed from the 5.5% rise in demand seen in July, IATA noted that “cargo demand still shows resilience in a challenging global economic context”.

Meanwhile, capacity, measured in available cargo tonne-km (ACTK), increased by 3.7% compared to August 2024. As a result, the load factor level improved by 0.2 percentage points year on year to 44.2%.

Willie Walsh, IATA’s director general, said: “Air cargo demand grew 4.1% in August, marking the sixth consecutive month of year-on-year growth. Volumes continue to grow even as global trade patterns change.

“Air cargo has benefited from a shift from sea for some high-value goods as shippers try to minimise the risk of tariff changes.  And growth patterns indicate some being diverted away from North America, fueling stronger growth for the Europe–Asia, Within Asia, Africa–Asia, and Middle East–Asia trade lanes.

“This adaptability is vital as shippers navigate the evolving landscape of US tariff policy.”

The economic environment was broadly positive, but also reflected challenges. The global goods trade grew by 5.4% year on year in July and global manufacturing in August showed rising optimism in manufacturing PMI, with a rebound to 51.75, the strongest reading since June 2024.

Sentiment on new export orders, however, remains below 50 at 48.73, reflecting persistent caution amid tariff uncertainty. Jet fuel prices in August were also 6.4% lower year on year, marking the fourteenth consecutive month of year-on-year declines.

August 2025 air cargo market demand

Looking at regional performance, African airlines registered an 11% year-on-year increase in demand for air cargo in August, the strongest rise of all regions. Capacity increased by 12.3% year on year.

 

Unsurprisingly, Asia Pacific airlines saw a 9.8% demand growth and capacity increased by 6.9%. Other regions saw more modest growth. European carriers saw a 3.2% increase in demand, with capacity increasing 4.2%. Middle Eastern carriers saw a 2.7% demand increase and capacity increased by 4.3%.

Latin American carriers saw a 2.1% increase, while capacity increased by 5%.

North American carriers saw a 2.1% decrease, the worst performance of all regions. Capacity decreased by 1%.

Airfreight volumes in August increased significantly across most major trade corridors. Europe–Asia and within Asia posted robust double-digit growth, while Middle East–Asia, North America-Europe, and Africa-Asia also saw notable gains.

In contrast, Asia–North America, Middle East–Europe and within Europe recorded declines.

By Damian BrettDamian Brett24 September 2025

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At the Caspian Air Cargo Summit, Aevean’s Marco Bloemen highlighted how air cargo volumes to the US have shifted away from China over the past nine months

Generic-air-cargo-air-freight-shutterstock_2351268771 780 by 507_resized

Photo: Shutterstock

Air cargo trade lanes have rapidly shifted this year as a result of US tariffs and the country’s decision to end the de minimis exemption.

Speaking at the Caspian Air Cargo Summit, Marco Bloemen, managing director of consultant Aevean, highlighted how the air cargo market has changed since the start of the year.

One of the biggest changes has been the drop off in e-commerce volumes from China to the US, caused by the ending of the de minimis exemption for China in May.

As a result, the US has seen its imports of low-value e-commerce goods by air from China drop by around 40% in July compared with April levels.

While volumes to the US have declined, other locations are seeing a rise in demand as the platforms switch their focus to other countries, Bloemen said.

He pointed out that China to Europe e-commerce volumes are up from a 21% share in May-July last year to 27% share of the overall market this year. The US is down from 31% to 15% and ‘other’ locations increased from a 48% share to a 57% share.

Much of the shift to Europe is for transhipment volumes, he added, with the likes of Hungary and Belgium growing quickly.

There had also been increases to the Middle East and South America, he said.

The US tariffs have also had an impact on air cargo volumes from China to the US, which between April and July have declined by 19% compared with a year ago.

In contrast, volumes to the US from other locations have risen rapidly, led by the likes of Taiwan and Vietnam.

Bloemen said that April-July volumes from Taiwan have increased by around 119% year on year, with volumes of computer hardware and network equipment fuelling the increases.

This increase translates to around 720 extra widebody freighter flights over the four months.

Meanwhile, volumes from Vietnam over the period are up by around 93% year on year, led by laptops and clothing. This increase translates to an extra 610 widebody freighters.

Vietnam has now overtaken China as the US’ largest trading partner for laptops.

“Right now we are seeing Vietnam go up and we are seeing Taiwan go up on the same lane,” he said.

“Taiwan is computer equipment, data racks and equipment for data centres; it is booming – there are phenomenal growth rates from Taiwan into the US.”

On the smartphone front, India is now the largest exporter of the devices to the US, having overtaken China in April.

Other fast-growing markets to the US over the period include Italy and France as companies frontloaded high-end fashion items to import them before the tariffs were implemented.

Reflecting these developments is airline cargo capacity deployment, he said.

Bloemen pointed out that capacity on services from Asia to Europe and the Middle East has increased by double-digit percentages year on year, while transpacific and transatlantic capacity is flat.

Bloemen explained that shifts in trade also help to extend yield imbalances.

“From Asia to Europe, back in 2023, there was 1.2 times more flying from Asia to Europe than on the way back and then the yield was 1.6 times as much.

“Fast forward to 2025, the weight discrepancy has increased [to 1.3], but the yield discrepancy is going super fast and it is now roughly 2.6 times as much that you have to pay from Asia to Europe as on the way back. And the transpacific is a similar story.”

However, Bloemen also pointed out that total airfreight volumes had increased by 5.2% year on year for the year to date, thanks to front loading and an 18% increase in e-commerce demand.

Capacity shortages ahead

Bloemen also reiterated a concern expressed by Atlas Air’s Martin Drew in an earlier session at the event that there could be a shortage of widebody freighter capacity in the future.

He pointed out that overall cargo capacity had shown no growth since 2019 due to a 3% decline in belly capacity following Covid and only a 3% increase in freighter capacity.

And the situation doesn’t appear likely to improve this year as a result of aircraft deliveries slowing since Covid.

 

Bloemen said that in 2019, 343 widebody passenger aircraft were delivered along with 55 freighters.

Last year, these numbers had shrunk to 139 widebody passenger aircraft and 29 freighters. Meanwhile, the first half of this year has seen 68 widebody passenger units delivered and 27 freighters.

“We are going to see a shortage of capacity in the years to come,” he said.

JD Airlines launches Shenzhen-Singapore cargo route

By Rebecca JeffreyRebecca Jeffrey22 September 2025

The new route will operate three times a week and connects China’s manufacturing hub with Southeast Asia’s key transshipment centre

First JD Airlines flight between Shenzhen and Singapore

JD Logistics’ cargo airline, JD Airlines has begun flying between Shenzhen, China and Singapore to support e-commerce and electronics demand in the Asia-Pacific region.

The first flight between Shenzhen Bao’an International Airport (SZX) and Singapore Changi Airport (SIN) took place on 19 September and is scheduled to be carried out every Wednesday, Friday and Sunday, taking off from Shenzhen at 9am and landing in Singapore at 3pm, said JD Logistics in a press release.

This new route is served with a 737-800 Boeing Coverted Freighter (BCF), which has a one-way maximum payload of 22 tons. According to Planespotters, JD Airlines’s fleet comprises 10 737-800 freighters in total, all converted.

In June last year, AerCap signed lease agreements for four 737-800BCFs with JD Airlines.

Outbound goods on the new route are mainly consumer electronics and e-commerce packages which will be flown directly to Singapore. A small amount of time-sensitive goods will be transited to the European and American markets through Singapore.

The return trip will mainly focus on electronic products, Singapore’s local auto parts and e-commerce goods transshipped from Europe and the US through Singapore.

The opening of this route is an important measure for JD Airlines to serve the Guangdong-Hong Kong-Macao Greater Bay Area economic circle and the core market of Southeast Asia, said JD Logistics.

In recent years, Shenzhen, as an important base for China’s scientific and technological innovation and cross-border e-commerce, has continued to increase its import and export demand for Southeast Asia. As a global trade, shipping and financial center, Singapore is an important hub connecting Southeast Asia with European and American markets.

JD Airlines said: “We hope that through this route, we will open a smoother channel for Chinese manufacturing and Chinese sellers, and improve the turnover efficiency of the entire supply chain in Southeast Asia and international markets.”

JD Airlines has opened more than 20 regular domestic and international routes, including Nantong, Incheon, Ezhou, Bangkok, Chengdu, Yangon, Shenzhen and Kuala Lumpur.

JD Logistics is a global provider of technology-driven supply chain and logistics services. Established as a dedicated business group of JD.com in April 2017, JD Logistics serves a wide range of businesses and individual consumers across China.

 

BBN Airlines Indonesia gains EASA TCO authorisation for EU operations

By Mike Bryant 16 September 2025

The EASA authorisation, effective from 5 September, allows the Avia Solutions Group subsidiary to expand aircraft, crew, maintenance and insurance services to airlines operating EU routes, marking a key milestone for the carrier’s regional growth strategy.

BBN Airlines Indonesia Boeing 737

BBN Airlines Indonesia Boeing 737

Source: Avia Solutions Group

BBN Airlines Indonesia has been granted Third-Country Operator (TCO) authorisation by the European Union Aviation Safety Agency (EASA) in a move that was effective as of 5 September this year.

This approval enables the wet-lease aircraft provider to operate in the EU and expand its aircraft, crew, maintenance and insurance (ACMI) services to airlines operating flights into the EU.

BBN Airlines Indonesia is a subsidiary of Avia Solutions Group, said to be the world’s largest ACMI provider, operating a fleet of 209 passenger and cargo aircraft around the world.

The group also provides various aviation-related services such as maintenance, repair and overhaul (MRO), pilot and crew training and ground handling.

BBN Airlines Indonesia today operates a fleet of one Boeing 737-400 freighter and one B737-800 freighter, as well as three B737-800 passenger aircraft and one B737-900ER passenger aircraft.

It also has two B737-800 passenger aircraft on order that are due to be delivered by October.

Compliance. All non-European operators wanting to fly to the EU are required to hold a TCO permit, which certifies compliance with EASA safety and operational standards.

With it, operators may obtain commercial air operations permits across all EASA member states without requiring separate authorisation from individual EU countries.

“Securing the EASA TCO marks an important milestone for BBN Airlines Indonesia,” Martynas Grigas, chairman of BBN Airlines Indonesia, commented.

“It reflects not only our unwavering commitment to global safety and compliance standards but also our readiness to support airlines with scalable ACMI solutions as they expand into and within the EU market.”

Earlier this year, BBN Airlines Indonesia achieved its IATA Operational Safety Audit (IOSA) certification.

 

Why CORSIA Matters

15 September 2025

Dear All,

CORSIA—the Carbon Offsetting and Reduction Scheme for International Aviation—will be in the spotlight when the 42nd Assembly of the International Civil Aviation Organization (ICAO) gets underway later this month. In this blog Marie Owens Thomsen, IATA Senior Vice President Sustainability & Chief Economist, highlights the critical importance of CORSIA to help decarbonize the air transport industry. While it was created and endorsed by Member States at the 2016 Assembly as the sole economic measure to mitigate the impact of international flying, it requires their continued support to make it a success.

You are welcome to quote from this blog or to republish it.

Key quote:

“Taking advantage of CORSIA to create a win-win-win-win situation should be a no-brainer: it helps countries generate much-needed climate finance, it channels airline decarbonization efforts into certifiable emission reductions, it helps countries with their commitments under the Paris Agreement, and contributes to improved socio-economic outcomes for all involved.”

Key points from the blog include:

• CORSIA requires airlines to purchase and cancel “emissions units” to offset their emissions over and above 85% of 2019 emissions. Operationally, it can be done by using CORSIA-eligible fuels or by buying carbon credits (Eligible Emissions Units, EEUs) that are generated from projects that reduce CO2 emissions.
• The States that agreed to create CORSIA oblige airlines to buy EEUs but States are not obliged to provide them. Therein lies the key challenge: there are not enough EEUs on the market for airlines to purchase and paradoxically, without sufficient EEUs, it will be challenging for airlines to meet their CORSIA obligations.
• The key message from the airline industry to the ICAO Assembly is that following a “global standard” approach is the only way to solve the net zero carbon emissions challenge. That means making CORSIA a success, and supplying the market with sufficient EEUs.

August 21, 2025 by PLA Editor

Hong kong international airport

In July, Hong Kong International Airport (HKIA) handled 5.2 million passengers and 33,670 flight movements, representing 9.7% and 8.3% year-on-year growth, respectively. While transfer/ transit passengers continued to experience growth from a low base, overall passenger traffic growth softened due to adverse weather and a decline in travel demand to Japan.

Cargo throughput saw a 3.9% year-on-year increase to 430,000 in July, mainly driven by stronger traffic to/ from Europe and the Middle East, which offset declines in traffic to/ from North America.

For the first seven months of the year, passenger volume rose to 34.6 million, while flight movements increased to 226,020, experiencing growth of 15.3% and 9.8% respectively, compared to the same period of 2024. Cargo throughput recorded a year-on-year increase of 2.2% to 2.83 million tonnes for the same period.

On a 12-month rolling basis, passenger volume grew by 17.3% year-on-year to 57.6 million, while flight movements increased by 13.1% to 383,450. Cargo throughput rose by 5.4% year-on-year to about 5 million tonnes.

Meanwhile, HKIA continues to expand its extensive air network with airlines resuming more routes and launching new ones in recent months. Notable additions include Munich, Rome and Brussels in Europe; Subang in Southeast Asia; Yiwu and Datong in Mainland China, among others, further reinforcing the airport’s role as an international aviation hub in Asia.

Hong Kong International Airport is a nominee at the 12th Payload Asia Awards under the categories Cargo Airport of the Year – Asia Pacific, Global Airport of the Year – Top Award, and Air Cargo Technology Provider of the Year. To be part of this annual program, visit the official page of the 12th Payload Asia Awards.

Other Topics: Air Cargo Network, Air Express, Air Freight Services, Air Logistics, Asia Pacific Air Cargo, Asia Pacific Air Freight, Asia Pacific Air Logistics, Asia Pacific Shipments, Cargo Flights, E-Commerce Logistics, Express Delivery, Express Logistics, Hong Kong International Airport (HKIA), International Air Shipments, International Express Delivery, Transpacific Air Cargo, Transpacific Air Freight

Geneva – The International Air Transport Association (IATA) released data for June 2025 global passenger demand with the following highlights:

• Total demand, measured in revenue passenger kilometers (RPK), was up 2.6% compared to June 2024. Total capacity, measured in available seat kilometers (ASK), was also up 3.4% year-on-year. The June load factor was 84.5% (-0.6 ppt compared to June 2024).
• International demand rose 3.2% compared to June 2024. Capacity was up 4.2% year-on-year, and the load factor was 84.4% (-0.8 ppt compared to June 2024).
• Domestic demand increased 1.6% compared to June 2024. Capacity was up 2.1% year-on-year. The load factor was 84.7% (-0.4 ppt compared to June 2024).

“In June, demand for air travel grew by 2.6%. That’s a slower pace than we have seen in previous months and reflects disruptions around military conflict in the Middle East. With demand growth lagging the 3.4% capacity expansion, load factors dipped 0.6 percentage points from their all-time record-high levels. At 84.5% globally, however, load factors are still very strong. And with a modest 1.8% capacity growth visible in August schedules, load factors over the Northern summer are unlikely to stray far from their recent historic highs,” said Willie Walsh, IATA’s Director General.

Air passenger market in detail – June 2025

June 2025

(% year-on-year)             World share1     RPK        ASK        PLF (%-pt)           PLF (level)

Total Market      100%     2.6%      3.4%      -0.6%     84.5%

Africa    2.2%      0.8%      1.5%      -0.6%     74.6%

Asia Pacific          33.5%    5.0%      4.7%      0.3%      83.0%

Europe 26.7%    2.2%      2.6%      -0.3%     87.8%

Latin America     5.3%      7.9%      9.6%      -1.3%     82.9%

Middle East        9.4%      -0.2%     1.6%      -1.4%     78.3%

North America  22.9%    0.1%      2.1%      -1.7%     86.4%

1% of industry RPKs in 2024

Regional Breakdown – International Passenger Markets

International RPK growth reached 3.2% in June year-on-year, but load factor fell across all regions as capacity growth outstripped demand. The steepest fall in RPK growth from May was in the Middle East, where international traffic contracted 0.4% year-on-year, impacted by military conflict.

Asia-Pacific airlines achieved a 7.2% year-on-year increase in demand. Capacity increased 7.5% year-on-year, and the load factor was 82.9% (-0.2 ppt compared to June 2024).

European carriers had a 2.8% year-on-year increase in demand. Capacity increased 3.3% year-on-year, and the load factor was 87.4% (-0.4 ppt compared to June 2024).

North American carriers saw a 0.3% year-on-year fall in demand. Capacity increased 2.2% year-on-year, and the load factor was 86.9% (-2.2 ppt compared to June 2024).

Middle Eastern carriers saw a 0.4% year-on-year decrease in demand. Capacity increased 1.1% year-on-year, and the load factor was 78.7% (-1.2 ppt compared to June 2024). Military conflict particularly impacted traffic on routes to North America (-7.0% year-on-year) and Europe (-4.4% year-on-year).

Latin American airlines saw a 9.3% year-on-year increase in demand. Capacity climbed 11.8% year-on-year. The load factor was 83.3% (-1.9 ppt compared to June 2024).

African airlines saw a 0.3% year-on-year decrease in demand. Capacity was up 0.3% year-on-year. The load factor was 74.6% (-0.5 ppt compared to June 2024). The decline in African load factor may be due to increased competition from European and Middle Eastern carriers.

Domestic Passenger Markets

Domestic RPK rose 1.6% over June 2024 and load factor fell by 0.4 ppt to 84.7% on the back of a 2.1% capacity expansion. Brazil was the standout performer, and the US domestic market saw a very slight expansion for the first time in four months.

June 2025

(% year-on-year)             World share1     RPK        ASK        PLF (%-pt)           PLF (level)

Domestic             38.2%    1.6%      2.1%      -0.4%     84.7%

Dom. Australia  0.8%      0.9%      1.5%      -0.5%     81.1%

Dom. Brazil         1.1%      14.7%    17.0%    -1.7%     83.0%

Dom. China P.R.                11.3%    3.8%      3.0%      0.6%      83.1%

Dom. India          1.7%      5.4%      9.0%      -2.9%     84.3%

Dom. Japan        1.0%      2.9%      -0.3%     2.3%      75.3%

Dom. US              14.4%    0.1%      1.8%      -1.5%     86.0%

1% of industry RPKs in 2024

Note: the six domestic passenger markets for which broken-down data are available account for approximately 30.2% of global total RPKs and 79.1% of total domestic RPKs

>Read the latest Passenger Market Analysis

For more information, please contact:

Corporate Communications

Tel: +41 22 770 2967

Email: corpcomms@iata.org

▪    IATA (International Air Transport Association) represents some 350 airlines comprising more than 80% of global air traffic.

▪    You can follow us on X for announcements, policy positions, and other useful industry information.

▪    Fly Net Zero

▪    Statistics compiled by IATA Economics using direct airline reporting complemented by estimates, including the use of FlightRadar24 data provided under license.

▪    All figures are provisional and represent total reporting at time of publication plus estimates for missing data. Historic figures are subject to revision.

▪    Domestic RPKs accounted for about 38.2% of the total market in 2024. The six domestic markets in this report account for 30.4% of global RPKs.

▪    Explanation of measurement terms:

‒  RPK: Revenue Passenger Kilometers measures actual passenger traffic

‒  ASK: Available Seat Kilometers measures available passenger capacity

‒  PLF: Passenger Load Factor is % of ASKs used.

▪    IATA statistics cover international and domestic scheduled air traffic for IATA member and non-member airlines.

▪    Total passenger traffic market shares by region of carriers for 2024 in terms of RPK are: Asia-Pacific 33.6%, Europe 26.7%, North America 22.9%, Middle East 9.4%, Latin America 5.3%, and Africa 2.2%.

31 July 2025        No. 33

Geneva – The International Air Transport Association (IATA) released data for June 2025 global air cargo markets showing:

• Total demand, measured in cargo tonne-kilometers (CTK), rose by 0.8% compared to June 2024 levels (1.6% for international operations).
• Capacity, measured in available cargo tonne-kilometers (ACTK), increased by 1.7% compared to June 2024 (2.8% for international operations).

“Overall, air cargo demand grew by a modest 0.8% year-on-year in June, but there are very differing stories behind that number for the industry’s major players. Trade tensions saw North American traffic fall by 8.3% and European growth stagnate at 0.8%. But Asia-Pacific bucked the trend to report a 9.0% expansion. Meanwhile disruptions from military conflict in the Middle East saw the region’s cargo traffic fall by 3.2%,” said Willie Walsh, IATA’s Director General.

“The June air cargo data made it very clear that stability and predictability are essential supports for trade. Emerging clarity on US tariffs allows businesses greater confidence in planning. But we cannot overlook the fact that the ‘deals’ being struck are resulting in significantly higher tariffs on goods imported into the US than we had just a few months ago. The economic damage of these cost barriers to trade remains to be seen. In the meantime, governments should redouble efforts to make trade facilitation simpler, faster, cheaper and more secure with digitalization,” said Walsh.

Several factors in the operating environment should be noted:

• Year-on-year, world industrial production rose 3.2% in May and global goods trade grew by 3.5%.
• The June jet fuel price was 12% lower year-on-year, a fourth consecutive year-on-year monthly decline. It was, however, 8.6% up on May prices.
• Global manufacturing rebounded in June, with the PMI rising above the 50 mark to 51.2. The PMI for new export orders improved by 1.2 index points but remained in negative territory (49.3), under pressure from recent US trade policy shifts.

Air cargo market in detail – June 2025

June 2025

(% year-on-year)             World share1     CTK        ACTK     CLF (%-pt)           CLF (level)

Total Market      100%     0.8%      1.7%      -0.4%     45.5%

Africa    2.0%      3.9%      6.2%      -0.9%     42.1%

Asia Pacific          34.2%    9.0%      7.8%      0.6%      50.3%

Europe 21.5%    0.8%      2.6%      -0.9%     49.6%

Latin America and Caribbean      2.9%      3.5%      -0.4%     1.4%      36.6%

Middle East        13.6%    -3.2%     1.5%      -2.2%     45.2%

North America  25.8%    -8.3%     -5.1%     -1.3%     38.5%

1% of industry CTKs in 2024

June Regional Performance

Asia-Pacific airlines saw 9.0% year-on-year demand growth for air cargo in June, the strongest growth of all regions. Capacity increased by 7.8% year-on-year.

North American carriers saw an 8.3% year-on-year decrease in growth for air cargo in June, the slowest growth of all regions. Capacity decreased by 5.1% year-on-year.

European carriers saw 0.8% year-on-year demand growth for air cargo in June. Capacity increased 2.6% year-on-year.

Middle Eastern carriers saw a 3.2% year-on-year decrease in demand for air cargo in June. Capacity increased by 1.5% year-on-year.

Latin American carriers saw a 3.5% year-on-year increase in demand growth for air cargo in June. Capacity decreased by 0.4% year-on-year.

African airlines saw a 3.9% year-on-year increase in demand for air cargo in June. Capacity increased by 6.2% year-on-year.

Trade Lane Growth: Air freight volumes in June 2025 increased for major trade corridors from/within Europe and Middle East-Asia. However, other relevant trade routes from/within Asia and from North America have decreased significantly in the most recent month.

Trade Lane          YOY Growth       Notes    Market Share of Industry*

Asia-North America        -4.8%     7 consecutive months of decline               24.4%

Europe-Asia       +10.6% 28 consecutive months of growth            20.5%

Middle East-Europe        -4.5%     6 consecutive months of decline               5.7%

Middle East-Asia              +2.8%    4 consecutive months of growth               7.4%

Within Asia         +8.7%    20 consecutive months of growth            7.0%

North America-Europe  +4.8%    17 consecutive months of growth            13.3%

Africa-Asia          -4.8%     2 consecutive months of decline               1.4%

*Share is based on full-year 2024 CTKs.

July 14, 2025 by PLA Editor

association of asia pacific airlines

Preliminary financial performance figures released today by the Association of Asia Pacific Airlines (AAPA) showed that Asia Pacific carriers achieved US$7.3 billion in combined net profits in 2024, supported by strong growth in passenger traffic and a marked recovery in cargo volumes. Nevertheless, the region’s carriers faced a challenging operating environment due to ongoing supply chain constraints and rising operating costs.

For the year, robust growth in business and leisure travel, both within the region and globally, resulted in a 19.9% increase in systemwide passenger demand, in revenue passenger kilometer (RPK) terms. Meanwhile, a surge in e-commerce activity and disruptions to maritime shipping contributed to a solid 13.9% increase in international air cargo demand, as measured in freight tonne kilometres (FTK), following two consecutive years in decline.

Asia Pacific airlines recorded a 7.7% increase in operating revenue, reaching a combined total of US$213.9 billion in 2024, compared to US$198.6 billion in 2023. Aggregated passenger revenue rose by 8.8% to US$170.4 billion, while cargo revenue climbed by 10.3% to US$23.2 billion. Robust traffic growth more than offset the impact of a 9.2% decline in passenger yields to 8.0 US cents per RPK, and a 3.2% decline in air cargo yields to 32.7 US cents per FTK.

Combined operating expenses rose by 8.4% to US$199.8 billion for the year, due mainly to a 10.1% increase in non-fuel expenditure to US$138.9 billion. Persistent supply chain challenges, including shortages of spare parts, aircraft delivery delays and aircraft groundings due to engine issues, drove up maintenance and leasing costs. Inflationary pressures also contributed to higher staff expenditure and airport charges.

Fuel expenditure, the single largest cost item, rose by 4.8% to US$60.8 billion, in tandem with an increase in flights operated. The increase was partly mitigated by a 13.4% decline in jet fuel prices to an average of US$98.1 per barrel in 2024. The share of fuel expenditure as a percentage of total operating costs averaged 30.5%, down from 31.5% in 2023.

 

Commenting on the financial results, Mr. Subhas Menon, AAPA Director General said, “2024 was a year of remarkable resilience for Asia Pacific airlines, as carriers confronted multiple challenges while achieving strong growth in both passenger and cargo demand, along with record passenger load factors. However, airlines were not immune to cost pressures. The marked increase in operating expenses, particularly non-fuel costs, underscored the impact of supply chain constraints. Despite this, Asia Pacific airlines demonstrated their adaptability, delivering operating margins of 6.6% for the year, just 0.6 percentage points under the 7.2% in 2023.”

Looking ahead, Mr. Menon said, “The region’s carriers continue to face considerable headwinds, including elevated operating costs and ongoing supply chain disruptions. Geopolitical tensions may lead to renewed volatility in oil and currency markets while air cargo markets may soften further, as uncertainties over trade negotiations dampen demand for air shipments.”

“Nevertheless, air passenger demand is expected to remain relatively resilient, amidst continued growth in the region’s economies. In response, airlines are actively refining their business strategies, maintaining cost discipline while pursuing new revenue streams. At the same time, carriers are investing in fleet modernisation, digital innovation, and enhanced service offerings to deliver a high-quality travel experience.”

Other Topics: Air Cargo Network, Air Express, Air Freight Services, Air Logistics, Asia Pacific Air Cargo, Asia Pacific Air Freight, Asia Pacific Air Logistics, Asia Pacific Shipments, Association Of Asia Pacific Airlines (AAPA), Cargo Flights, E-Commerce Logistics, Express Delivery, Express Logistics, International Air Shipments, International Express Delivery, Transpacific Air Cargo, Transpacific Air Freight

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Jaromir Chalabala/ Shutterstock 2/03/2022

Plans to develop a negotiable cargo document that can be utilised by the air cargo industry have taken another step forward after the United Nations Commission on International Trade Law (UNCITRAL) approved a draft convention.

As well as approving the convention, UNCITRAL also recommended the draft for adoption by the United Nations General Assembly.

“The new draft convention addresses a legal gap in international trade by establishing a harmonised legal framework for negotiable documents of title across all modes of transport—air, road, rail, and sea—regardless of the different modes of transportation used for the cargo,” the International Civil Aviation Organization (ICAO) explained.

The document would mirror bills of lading used in ocean shipping that enable goods to be bought, sold, or used as collateral while still in transit.

“In contrast, the documents used for goods transported by road, rail, and air are typically non-negotiable, meaning they cannot be transferred to another party as a means of transferring the goods they represent,” ICAO explained.

“This legal gap has created cash flow problems for businesses, including micro, small and medium enterprises, when goods are transported via inland routes, limited opportunities for businesses in landlocked regions to trade across borders and hindered the development of seamless door-to-door transportation services.”

The draft convention on negotiable cargo documents was finalised during UNCITRAL’s 58th session.

ICAO said the document had been in development for three years and had involved the work of diplomats, legal experts and trade professionals.

Beate Czerwenka, chair of the working group that had led developments, said: “Today marks a pivotal moment for the future of global commerce. The Commission has finalized a text that bridges a long-standing legal gap, extending the proven benefits of negotiability to all forms of transport.

“This will empower small businesses to access finance, landlocked nations to participate more fully in global trade, and us all to build a more efficient, resilient, and digitalised trade ecosystem.

 

“Thanks to the new draft convention on negotiable cargo documents, the vision of a world where trade is faster, safer and more accessible is becoming a reality. All Member States are encouraged to support this transformative instrument in the General Assembly.”

The draft convention on negotiable cargo documents will be transmitted to the United Nations General Assembly, with a recommendation for adoption during the General Assembly’s 80th session in late 2025.

Under the proposals, the negotiable cargo documents will exist in a digital form, known as negotiable electronic cargo records.

The draft instrument will provide a legal framework for the issuance and use of a single electronic record that could cover door-to-door transportation, thereby simplifying the documentation process and increasing efficiency in operations.