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AAPA says yields not improving despite volume increase

ASIAN airlines find that despite a solid peak season, yields are not improving in line with volumes, says Andrew Herdman, director general of the Association of Asia Pacific Airlines (AAPA).

"The volume uptick has been more than offset by the revenue decline," Mr Herdman said.

While Asia's airlines still carry 40 per cent of the world's air cargo, prolonged global trade weakness has depressed freight rates, he said, reported London's Air Cargo News.

"We saw cargo volumes improving in the summer and that has continued to improve month by month, but before we start to celebrate, the rates have remained under pressure and yields in the first half were down 16 per cent," he said, addressing reporters in Manila, where the AAPA held its annual meeting.

One of the problems air cargo divisions are facing is overcapacity as carriers upgrade their fleets to newer aircraft that have far greater belly cargo space,' he said.

Greater volume of freight is being carried in these bellies, which puts operators of freighter aircraft under particular pressure.

But Mr Herdman said about half the cargo carried by air around the world still travelled in freighters, although it was very much sector driven.

Asia-Europe had fewer freighters because of the belly capacity available, but there were many freighters on the transpacific, where there was less available belly space.

Asian airlines also expressed concern at rising anti-free trade attitudes in the world but especially in the United States.

Mr Herdman said the anti-trade rhetoric was a concern, although he added that there might be a difference between what was said on the campaign trail and what happens in office.