Air cargo operators fly into turbulence; Asia-Pac a drag on global numbers

Singapore

THE slowing global economy and US-China trade war are weighing on Asia Pacific's air cargo market, with carriers such as Cathay Pacific and Singapore Airlines (SIA) expected to be harder hit owing to their exposure to their individual export hubs.

According to the latest figures from the International Air Transport Association (Iata), the Asia-Pacific suffered a 4.9 per cent decline in cargo traffic in July and a 7.1 per cent fall year-to-date. In particular, the US-China trade war and weaker manufacturing conditions for exporters in the region have significantly affected the market, Iata said.

Globally, in the first seven months of the year, air freight volumes were down 3.5 per cent from a year ago, dragged down partly by the Asia-Pacfiic region, which accounts for over 35 per cent of the global market. Another factor was last year's high base as the cargo market came off 18 months of strength, one analyst pointed out. Capacity was also injected…