Asia-Pacific airlines trending well despite trade dispute fears

Asia-Pacific carriers are continuing to benefit from strengthening demand despite the threat of trade protectionism, according to the region’s major airline industry group. “The solid pattern of growth seen in the first half of the year” extended into July, with Asian airlines “reporting further increases in both international passenger traffic and air cargo volumes” for the month, Association of Asia-Pacific Airlines (AAPA) DG Andrew Herdman. The global economic outlook “remains positive” in the short term, “despite some concern that uncertainties over future trade policy could undermine business confidence internationally,” Herdman said. “Both the US and China have announced expansionary fiscal measures, which should stimulate domestic demand … and hopefully mitigate any adverse impact from new tariff barriers.” International passenger traffic “showed sustained [year-on-year] growth” in July, AAPA said. Demand rose 7.3% compared to the previous year, with capacity climbing by 5.7%. This caused average load factors for the month to increase by 1.2 points to 82.7%. <br/>