Airlines in Asia-Pacific saw busier cargo operations in the past month, thanks to robust global trade and e-commerce sector, according to the International Air Transport Association (IATA).
In its latest report, IATA noted that air cargo demand in Asia-Pacific rose last month by 17.6 percent, the fastest growth among the regions.
The shipments within Asia showed a 19.8-percent uptick for the period. The Europe-Asia, Middle East-Asia, and Asia-Africa trade lanes saw growth of 17.9 percent, 15.9 percent, and 15.4 percent, respectively.
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“Air cargo demand hit record highs year-to-date in July with strong growth across all regions. The air cargo business continues to benefit from growth in global trade, booming e-commerce and capacity constraints on maritime shipping,” IATA director general Willie Walsh said.
The trade organization noted that global trading activities were picking up as manufacturing firms source inputs for production. The purchasing managers index was 50.2 in July, signaling an expansion in manufacturing output.
Meanwhile, online shopping has also been driving the demand for logistics services because it heavily relies on cross-border shipments. A study by Google, Temasek, and Bain & Co. projects the Philippines’ e-commerce sector will be worth $22 billion by 2025.
Growth streak
Globally, IATA estimated that air cargo demand grew by 13.6 percent in July, marking the eighth consecutive month of double-digit growth.
Next to Asia-Pacific, Middle Eastern carriers saw the strongest increase in air cargo demand with 14.7 percent. This was followed by airlines in Europe with 13.7 percent and Latin America with 11.1 percent. “With the peak season still to come, it is shaping to be a very strong year for air cargo,” Walsh concluded.
In the first half, Philippine Airlines saw its cargo revenues improve by 8 percent to P4.12 billion from P3.81 billion a year ago. The cargo segment of Cebu Pacific, meanwhile, contributed revenues of P2.64 billion in the same period, showing 31.9-percent growth.