Asia Pacific Carriers Record Robust Cargo Growth Amid Festive Slowdown and Rising Costs
Air cargo demand across the Asia Pacific region remained resilient in February, with Association of Asia Pacific Airlines (AAPA) reporting solid year-on-year growth despite seasonal disruptions linked to the Lunar New Year holiday period.
According to AAPA’s latest traffic data, international air cargo demand—measured in freight tonne kilometres (FTK)—rose by 8.7% compared to the same month last year. The growth comes despite widespread factory shutdowns across key manufacturing markets during the festive season, which traditionally dampens output and shipment volumes.
E-commerce and manufacturing demand sustain momentum
The continued expansion of e-commerce, alongside sustained demand for consumer goods, intermediate products, and capital equipment manufactured in Asia, played a central role in supporting cargo volumes.
AAPA noted that overall trade activity remained robust, reflecting stable global demand patterns even during a period typically characterised by reduced industrial activity.
Capacity growth also remained closely aligned with demand. Available freight capacity increased by 8.3% year-on-year, resulting in a marginal 0.3 percentage point improvement in the average international freight load factor, which reached 58.2% in February.
Strong start to 2026
Commenting on the performance, Subhas Menon, Director General of AAPA, highlighted that the positive momentum extended beyond a single month. International air cargo volumes rose by 7.6% in the first two months of 2026 compared to the same period last year, supported by improving business confidence and rising export orders from Asia.
Geopolitical tensions and cost pressures emerge
Despite the encouraging demand outlook, airlines in the region are facing mounting operational challenges. Escalating geopolitical tensions in the Middle East have begun to disrupt key air corridors, particularly on Asia–Europe routes, reducing available airspace and limiting operational flexibility.
At the same time, carriers are grappling with a sharp increase in fuel costs. Jet fuel prices surged from an average of around $90 per barrel in the first two months of the year to approximately $150 per barrel in March, significantly raising operating expenses.
Longer flight routings, necessitated by airspace restrictions, have further compounded cost pressures, squeezing already thin profit margins across the sector.
Outlook remains uncertain
Looking ahead, AAPA cautioned that while underlying demand fundamentals remain positive, the broader outlook for both cargo and passenger markets is increasingly uncertain. Prolonged geopolitical instability could fuel inflationary pressures and dampen both business activity and consumer sentiment.
As airlines navigate a complex operating environment, balancing strong demand with rising costs and network constraints will remain a key challenge for Asia Pacific carriers in the months ahead.
