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Avneet Jolly and Anupam Prakash
ASIA: "India Automotive Monthly: Executive Summary" April 2011. 8-page report by J.D. Power Asia Pacific.
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backASIAtalk June, 2012
Asian Airlines Hit by Weak Demand and Softening Rates
Cargo carried on international routes by Association of Asia Pacific Airlines members fell 7.6 percent in April from prior year
Softening cargo rates due to weak demand continue to impact the bottom lines of Asia’s leading carriers, according to the Association of Asia Pacific Airlines.
Cargo carried on international routes by AAPA member airlines measured in freight tonne kilometres fell 7.6 percent last month compared to a year earlier and was down 4.8 percent over the first four months of the year.
Even after a 4.8% reduction in offered freight capacity, the average international air cargo load factor fell by 2.0 percentage points, to 66.3% in April.
“International air freight markets remain depressed,” said Andrew Herdman, AAPA Director General, with weak demand “exerting further downward pressure on rates” despite reductions in offered freight capacity.
“We're still seeing welcome growth in passenger demand, but airline profit margins have suffered as a result of the weak cargo market, and the impact of stubbornly high oil prices. Although key Asian economies are still performing relatively well, the operating environment remains challenging, clouded by uncertainties over prospects for the global economy.”
Source: Journal of Commerce - GAI
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