Cargo festival continues to vibrate for Asia-Pacific airlines | New
Cargo has proven to be a vital lifeline for major airlines in the Asia-Pacific region, with several carriers delivering record freight performance amid continued weakness in passenger markets.
Airlines attribute the high demand for air cargo to supply chain challenges in the region, as well as North America’s voracious appetite for auto parts and electronics.
In its fiscal third quarter ended September 30, Korean Air saw its ACTKs increase by 20.5% and CTK by 23.5%. Cargo load factors were also strong, increasing from 2.1% to 84.4%.
He attributed the strength of freight to continued industrial demand from the automotive, semiconductor and battery sectors. There is also a continued demand for Covid-19 test kits and vaccines.
The carrier notes that supply chain issues, manufacturing delays and logistics bottlenecks at major ports are increasing demand for air cargo. He also observed that quarantines at manufacturing plants such as China and Vietnam have resulted in a shortage of workers at airports.
Korea has seen strong growth in freight to the Americas in particular, where its freight revenues have nearly doubled.
Overall, Korea’s freight revenue hit a record 1.7 trillion won ($ 1.4 billion), up 62.4% year-on-year. The performance of sterling freight helped Korea achieve operating profit of 7.6 billion won.
Asiana Airlines saw its third-quarter cargo revenue jump 55% to W753 billion. Although ATKs fell 7% from a year earlier, RTKs rose 11%, load factors cargoes increasing by 10 percentage points to 97%. This helped increase the airline’s freight yield by 40%.
As for Korean, he noted high freight demand for electronic and machinery parts.
CATHAY YIELD CLIMBERS
Cathay Pacific Airways, in its October freight traffic release, says freight demand remains strong. It carried 137,000 t of freight in October, up 19.8% from the previous year – although this figure is 25% lower than in October 2019, before the coronavirus pandemic hit. disappear the cargo hold capacity.
Cargo load factors in October increased four percentage points to 82.9%. In its interim results from 2021 to June 30, Cathay reported freight revenues of HK $ 12.7 billion ($ 1.6 billion), stable from the first half of 2020. Nonetheless, freight returns were solid for the period, up 24.4%.
The carrier, however, continues to suffer from heavy Hong Kong quarantine requirements for flight crews. This situation was particularly acute in the first half of the year.
Reporting its interim results as of September 30, Singapore Airlines posted record freight revenues of S $ 1.9 billion, up 51.2 percent from the previous year. Adding more cargo hold capacity on passenger flights helped it increase cargo capacity by 49.5%.
âThe strong performance in freight reflects the shortage of capacity in air freight and ocean freight, as well as continued supply chain disruptions that are driving demand for air freight,â says SIA.
Overall, freight and mail accounted for 66.3% of SIA’s first half revenue, but that was not enough to bring the airline back to profitability. SIA adds that its freight capacity has recovered to 63% of pre-pandemic levels in its first fiscal semester.
Japanese carriers also continued to offset losses in their passenger business with good freight performance.
In its interim financial results for the six months to September 30, All Nippon Airways saw its freight revenues nearly double to a record 154 billion yen ($ 1.3 billion). International freight revenues were particularly strong, almost tripling to 138 billion yen.
ANA’s international ATKs rose 49.4%, while international RTKs rose 58.1%, helping international freight yields jump 27.4%.
âBy capturing the demand for the transportation of goods such as auto parts and semiconductors from Asia as well as electronic equipment and vaccines from North America and Europe, freight volume has increased. greatly exceeded the quantity transported during the same period of the previous year and quarterly revenues reached a record high. record, âsays ANA.
STRONG INCREASE IN JAL CARGO REVENUES
As for Japan Airlines, for the first half of its fiscal year 2021, it recorded first half freight revenues of 98.3 billion yen, up 84% from the previous year, and more than double the first six months of its 2019 financial year.
He also observed strong demand for auto parts and electronics, especially in North America. Nationally, the strong demand for parcels continued. This helped international freight revenues to double to 80.8 billion yen.
Taiwanese carriers China Airlines and EVA Air also reported third-quarter operating profits as of September 30. Without providing details, both carriers highlighted strong freight performance.
Airlines are optimistic about a continued strong cargo performance. The Korean notes continued bottlenecks and staff shortages at airports, and looks forward to the typical year-end peak season for cargo, especially high-yield cargo.
SIA shares this point of view.
“The traditional peak year-end freight period is expected to experience strong demand, supported in part by restocking retail inventory ahead of peak shopping season,” he said.
âThis comes amid an ongoing industry capacity crisis for air and ocean freight. The purchasing manager indices are still in expansion territory for major export economies, which bodes well for air freight demand.