Asia Pacific air cargo will bounce back
September 21, 2011
The brighter picture painted by the International Air Transport Association contained some disappointing news as well. Asia Pacific carriers have been hit by a dramatic downturn compared to 2010.
It’s important to remember, however, that last year the region delivered $8 billion profit, and it still remains the most promising arena in the world today.
IATA noted that the weakness of air cargo markets is disproportionately affecting airlines from this region owing to the larger share of cargo in airline revenues. The shocks from the Japanese earthquake and tsunami continue to affect supply chains and cargo markets (in which Asia Pacific carriers have the largest market share).
A strong rebound is expected late in the year continuing into 2012.
And in the long term, things look even better.
A recent report issued by World Air Transport Statistics noted that Asia will continue to be at the forefront of the freight industry, expanding at a pace approaching 7 percent by the end of 2029.
This comes as scant surprise to the Boeing Company – China’s leading provider of aircraft – which maintains that the Asia Pacific region’s air traffic growth will exceed the world average by a “large” margin over the next two decades.
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