Mixed fortunes for Asia Pacific airlines in October

Preliminary traffic figures from the Association of Asia Pacific Airlines (AAPA) for the month of October show further growth in international air passenger markets, albeit at a slower pace, and a firm increase in air cargo demand.

Compared to the same month last year, October saw a 3.9% increase in the number of international passengers carried by the region’s airlines to a combined total of 24 million. Measured in revenue passenger kilometres (RPK), international passenger demand increased by 4.9%, reflecting relatively strong long haul markets. Overall, available seat capacity expanded by 5.0%, resulting in a marginal 0.1 percentage point decline in the average international passenger load factor to 77.0% for the month.

The pick-up in international air cargo demand, which began in the middle of the year, extended to the month of October with a firm 7.1% increase as measured in freight tonne kilometres (FTK), the strongest monthly increase of the year thus far. Growth in demand significantly outpaced the 3.9% expansion in offered freight capacity, leading to a 1.9 percentage point rise in the average international freight load factor to 65.7% for the month. 

 “The first ten months of the year saw an encouraging 6.1% increase in the number of international air passengers carried by Asian airlines, to a combined total of 243 million,” said AAPA Director General Andrew Herdman. 

“The relatively strong upswing in air cargo markets in October sustains the positive trend established over recent months, although overall volumes for the first 10 months of the year are up by just 0.7% compared to the same period last year.”

Looking ahead, Herdman said, “Air passenger demand remains relatively robust, although the pace of growth has slowed, reflecting a degree of uncertainty about the global economic outlook. The upswing in air cargo markets is a welcome development, although confidence remains fragile amidst still weak global trade conditions and signs that protectionist sentiments are likely to shape the political agenda.”