The Association of Asia Pacific Airlines (AAPA) has indicated tough times for the global air cargo business in the near run. The association recently released the financial report of the airlines in the APAC region in 2018 which underline the “net earnings of Asia Pacific airlines reducing to a combined US$4.7 billion, from the US$9.6 billion recorded in the previous year.”
Commenting on the near run prospects, Andrew Herdman, Director General of AAPA said, “Asia Pacific airlines continue to face significant headwinds in the form of persistent cost pressures, stiff competition as well as further volatility in oil and currency markets. Whilst air passenger markets remain relatively resilient, the weak sentiment surrounding air cargo markets is a warning signal that trade disputes are doing real damage to the economy and could further undermine global growth prospects going forward.”
The report has underlined that the international air cargo traffic as measured in freight tonne kilometres (FTK) slowed to a 2.2% increase in 2018 as uncertainties stemming from unresolved international trade disputes adversely affected business confidence and levels of export activity.