Business and recreational travel have been boosted by improved regional economies in Asia and increased trade, which is supported by stronger US markets. Freight-tonne kilometres have grown by a strong 5.4% compared to 2013 and freight capacity grew modestly at 4.1% in 2014, which resulted in a 0.8% increase in the average international freight load factor.
Andrew Herdman, AAPA director general, said: "Air cargo markets experienced a welcome upswing in 2014, with the second half of the year registering 6% growth compared to the same period in 2013, following several years of stagnant demand." He added that the drop in oil prices since the end of 2014 has been "welcomed by many airlines," however profitability will depend largely on how well airlines protect themselves from potential loss and limit exposure to debt, due to weaker Asian currencies.
