Asia Pacific airlines saw a strong recovery in air cargo demand in 2024, with a 13.9% rise in international freight traffic following two years of decline, according to preliminary financial performance data released today by the Association of Asia Pacific Airlines (AAPA).
The rebound, measured in freight tonne kilometres (FTK), was fuelled by a surge in e-commerce activity and continued disruptions to maritime shipping routes, which diverted more freight to air transport. The boost in volumes contributed to a 10.3% increase in total cargo revenues, which reached US$23.2 billion for the year.
Despite the volume growth, cargo yields declined by 3.2% year-on-year to 32.7 US cents per FTK, reflecting a market adjusting to post-pandemic capacity levels and more competitive pricing. Still, the upturn in demand was a welcome change for Asia Pacific carriers, many of whom had endured a prolonged slump in air freight performance.
Record Revenues, Rising Costs
Total operating revenue for Asia Pacific carriers rose 7.7% to US$213.9 billion in 2024, supported by both passenger and cargo performance. However, this was offset by an 8.4% increase in operating expenses, which reached US$199.8 billion.
Non-fuel costs surged by 10.1% to US$138.9 billion, driven by persistent supply chain bottlenecks, including spare parts shortages, aircraft delivery delays, and engine-related groundings. Maintenance and leasing costs, alongside rising staff pay and airport fees, placed significant pressure on balance sheets.
Fuel costs—the largest single line item—rose by 4.8% to US$60.8 billion, despite a 13.4% decline in jet fuel prices, averaging US$98.10 per barrel. The share of fuel in total operating costs eased slightly to 30.5%, down from 31.5% in 2023.
Cautious Optimism for Air Cargo Outlook
Commenting on the results, AAPA Director General Subhas Menon said: “2024 was a year of remarkable resilience for Asia Pacific airlines, with strong growth in both passenger and cargo sectors. Air freight bounced back as e-commerce demand surged and ocean shipping disruptions continued to redirect volumes to air.”
However, Mr Menon warned that the outlook for air cargo remains uncertain, with geopolitical tensions, fluctuating fuel prices, and fragile global trade conditions all likely to affect demand.
“Air cargo markets may soften in the near term as uncertainty over trade negotiations and geopolitical headwinds weigh on confidence,” he said.
Adapting to the New Landscape
Despite the challenges, Asia Pacific carriers posted a combined net profit of US$7.3 billion in 2024, supported by robust passenger traffic and strong cargo performance. Operating margins stood at 6.6%, only marginally lower than 2023.
Looking ahead, airlines in the region are expected to continue modernising their fleets, investing in digital innovation, and refining their cargo strategies to maintain competitiveness in a volatile market. With air freight still a vital revenue stream, particularly in Asia Pacific’s export-driven economies, carriers are positioning themselves to respond flexibly to shifting logistics demands.