The Association of Asia Pacific Airlines (AAPA) is warning of potentially more difficult times ahead – and if the level of freight activity is any guide there could be an economic slowdown coming.
Director general Andrew Herdman issued the cautionary guidance to member airlines at the AAPA’s annual Assembly of Presidents in November. “Airlines around the world are struggling to cope with the burden of skyrocketing oil prices. So far, the impact in terms of higher average fares does not appear to have affected passenger demand. But concerns remain that this prolonged period of high oil prices is beginning to weigh more seriously on the global economy,” says Herdman.
“We may already be seeing some warning signs from the air cargo business. Cargo is a key revenue contributor for most Asian airlines, generating around 20% of total revenues, boosted recently by strong exports to the USA and Europe, as well as growing intra-regional trade. After records set in 2004, cargo growth slowed significantly during 2005, and has been basically flat in recent months. A global economic slowdown would affect all airlines.” ■
Source: Airline Business
