Business World

Air cargo demand holding up in Asia-Pacific during pandemic

- By Arjay L. Balinbin Reporter

AIRLINES in Asia-Pacific countries, including the Philippine­s, saw air cargo demand for the month of February hold up “remarkably well” amid the decline in internatio­nal air passenger demand due to the coronaviru­s disease 2019 (COVID-19) pandemic, the Associatio­n of Asia Pacific Airlines (AAPA) said.

Flag carrier Philippine Airlines (PAL) said it mounted all-cargo flights from Manila to several domestic and internatio­nal stations this month.

“Air cargo demand held up remarkably well despite the effects of extended factory closures and lockdowns in China crippling the supply and distributi­on of manufactur­ed goods nationwide and related internatio­nal trade flows. These declines were partly offset by higher demand for air shipments of intermedia­te goods, including pharmaceut­ical and food supplies, within the region,” AAPA said in a statement released on March 27.

AAPA is a trade associatio­n of airlines based in the AsiaPacifi­c region. Its member airlines include PAL, which is operated by PAL Holdings, Inc.

It said Asia-Pacific airlines carried 17 million internatio­nal passengers last month, a 44% decline year-on-year.

AAPA Director-General Andrew Herdman said that for the first two months of 2020, the number of internatio­nal passengers travelling via Asian airlines “fell by 21% to 50 million.”

“As measured in revenue passenger kilometres (RPK), demand fell by 34.8%, alongside a 20.6% drop in available seat capacity. As a result, the average internatio­nal passenger load factor tumbled by 14.4 percentage points to 66.6% for the month [of February],” AAPA said.

Also for the month of February, airlines in the region reported a 3% year-on-year fall in internatio­nal air cargo demand in freight ton kilometers (FTK) terms.

“Offered freight capacity fell by a sharp 13.5%, with belly-hold capacity declining in tandem with the progressiv­e cuts in the number of passenger flights over the course of the month. As a result, the average internatio­nal freight load factor increased by 6.5 percentage points to 60.3% for the month,” AAPA said.

Mr. Herdman said the demand for air cargo “remains relatively unaffected.”

He noted that there are efforts being carried out to ensure the continuous, safe and efficient shipments of “critical supplies.”

“Asian airlines account for over one third of global air cargo flows, and operate large numbers of dedicated freighter aircraft. The sharp fall in passenger services has removed significan­t belly-cargo capacity from the market place. A number of airlines are now operating supplement­ary cargo services using passenger aircraft to meet the demand,” he said.

PAL said on Sunday that it mounted twelve roundtrip allcargo flights from March 19 to March 29.

The flag carrier said it was flying essential supplies, which include medicines and medical equipment from Manila to Visayas and Mindanao regions and from internatio­nal stations to Manila.

“The government's InterAgenc­y Task Force has made it clear that all-cargo flights are allowed to operate within the duration of the community quarantine period,” PAL noted.

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