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Air Cargo: Freight payload must keep pace with passengers in Asia Pacific

By Patrick Burnson, Executive Editor
June 28, 2011

As we discussed last week, air cargo shippers are increasingly concerned about the ongoing recovery of service in the Asia Pacific trade lanes. 

The International Air Transport Association (IATA) has already chimed in on this issue, and now we are hearing from Association of Asia Pacific Airlines (AAPA).

“The decline in international air cargo traffic reported for May this year reflects some moderation in the pace of global economic growth, affecting Asian exports, especially when compared to the very strong rebound in demand seen last year,” Andrew Herdman, AAPA Director General said. However, we may see volumes pick up again in the traditionally stronger second half of the year.”

Herdman noted that over the first five months of the year, Asian airlines have seen 2.5 percent growth in the number of international passengers carried, whereas international air cargo traffic has declined by 2.4 percent during the same period.

“The combination of slower revenue growth and sharply higher fuel costs means airline operating margins are under severe pressure,” he said. “Continued vigilance in controlling costs, and carefully matching capacity to the projected changes in demand will be the key to sustaining profitability.”

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About the Author

Patrick Burnson
Executive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).

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