Asia Pacific airlines saw robust cargo demand in July 2025, driven by strong export activity as shippers rushed to move goods ahead of U.S. tariff implementations.
According to preliminary traffic figures from the Association of Asia Pacific Airlines (AAPA), international air cargo demand, measured in freight tonne kilometres (FTK), rose 8.6% year-on-year. This growth came despite lingering weakness in global trade flows.
“International air cargo demand remained resilient, buoyed by stronger export activity ahead of the implementation of US tariffs in early August,” the AAPA said in its statement.
Higher Capacity, Stronger Load Factors
Freight capacity expanded by 6.4% year-on-year, while the average international freight load factor improved by 1.2 percentage points to 62.0% — signaling airlines were able to capture a solid share of the additional demand.
Solid Growth in 2025 So Far
For the first seven months of 2025, air cargo volumes grew 6.5% year-on-year, maintaining momentum from last year’s strong performance.
AAPA Director General Subhas Menon attributed the growth to a mix of factors, including inventory build-ups, shipment rerouting, and sourcing diversification:
“Businesses prioritised the speed and reliability afforded by air shipments,” Menon explained.
Risks Ahead: Tariffs and Trade Uncertainty
Looking forward, Menon cautioned that the implementation of U.S. tariffs could dampen demand and inject volatility into cargo markets.
Lower Fuel Costs Offer Relief
On the positive side, airlines are benefiting from a 15% year-to-date drop in jet fuel prices, averaging US$89 per barrel, alongside a weaker U.S. dollar against several regional currencies. These trends are helping to ease cost pressures caused by supply chain disruptions.
Focus on Efficiency and Profitability
Despite uncertainty, Asian carriers remain focused on disciplined cost management while seeking new revenue opportunities to sustain profitability.