Asia Pacific airlines recorded steady growth in air cargo demand during 2025, supported by frontloading activity ahead of tariff changes and shifting global trade patterns, according to preliminary figures released by the Association of Asia Pacific Airlines (AAPA).
Air cargo demand across the region, measured in freight tonne kilometres (FTK), increased by 3.5% year on year in 2025. AAPA attributed the growth partly to shippers accelerating cargo movements ahead of anticipated tariff increases, prompting airlines to quickly adapt capacity and network planning to changing trade flows.
The performance reflects broader resilience in global air cargo markets. According to the International Air Transport Association (IATA), worldwide air cargo demand, measured in cargo tonne kilometres (CTK), increased by 3.4% compared with 2024.
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Cargo Revenue Rises Despite Rate Pressure
Asia Pacific airlines reported a 1.4% increase in cargo revenue, reaching US$23.6 billion during 2025.
However, weaker freight pricing conditions affected profitability, with cargo yields declining by 2% year on year to 32.1 US cents per FTK.
The decline in yields reflected a more competitive pricing environment as airlines responded to changing demand patterns and capacity availability across major international trade lanes.
Cost Pressures Continue to Challenge Airlines
While air cargo demand remained positive, airlines continued to face significant operational challenges throughout the year.
Supply chain disruptions and inflationary pressures contributed to higher expenditure across several areas, including:
- Employee costs
- Aircraft leasing expenses
- Maintenance requirements
- Airport charges
In contrast, fuel costs provided some relief during the period as global jet fuel prices declined, helping offset increases in other operating expenses.
Wong Hong, Director General of AAPA, said Asia Pacific airlines entered 2025 from a strong position, supported by healthy passenger and cargo demand.
“Asia Pacific airlines entered 2025 from a position of strength, with robust passenger and cargo demand supporting another year of profitable growth.”
“While easing fuel prices provided some relief, persistent supply chain disruptions and inflationary pressures pushed non-fuel operating costs higher.”
Industry Outlook Faces Geopolitical and Cost Challenges
Looking ahead, airlines continue to navigate a complex operating environment shaped by geopolitical uncertainty, elevated operating costs and changing fuel markets.
Hong highlighted ongoing conflicts in the Middle East and continued volatility in jet fuel prices as key challenges facing carriers.
“Consequently, fuel expenditure, the largest single operating cost item for airlines, is expected to rise this year,” he said.
Despite these pressures, the strength of regional trade flows, manufacturing activity and demand for high-value cargo continues to support the importance of Asia Pacific airlines within global air freight networks.
The 2025 results underline the resilience of the region’s air cargo sector, while also highlighting the need for carriers to maintain operational flexibility as global supply chains continue to evolve.
