Positive take off in 2017 for Asia Pacific airlines

Monday, 6 March 2017 00:01 - - {{hitsCtrl.values.hits}}

Passengers carried up 7.7% to 26.8 million; International air cargo demand up 4.7%

Preliminary traffic figures compiled by the Association of Asia Pacific Airlines (AAPA) for January 2017 show growth in both the international air passenger and air cargo markets.

For the region’s carriers, the increase in leisure travel demand leading up to the Lunar New Year festive period helped underpin 7.7% growth in international air passenger numbers to a total of 26.8 million for the month.

Demand in revenue passenger kilometre (RPK) terms climbed 8.1% higher, buoyed by relatively robust demand for travel within the region and on selected long-haul routes.

The average international passenger load factor strengthened further by 1.7 percentage points to reach 81.8% after accounting for a 5.9% expansion in available seat capacity.

International air cargo demand, measured in freight toe kilometres (FTK), grew by 4.7%. Offered freight capacity expanded by 3.8%, resulting in a 0.5 percentage point rise in the average international freight load factor to 59.4% for the month.

“The year started on an encouraging note for Asian carriers, with both international air passenger and cargo markets growing strongly, boosted by the timing of the Lunar New Year holidays,” said AAPA Director General Andrew Herdman.

“The overall picture for the year ahead looks broadly positive, against a backdrop of renewed optimism on global growth prospects and improving consumer and business confidence across sectors. However, air travel markets remain intensely competitive, with margins still under pressure from the effects of rising fuel costs. Overall, airlines remain proactive in looking for new growth opportunities, whilst carefully managing costs in a bid to preserve earnings margins.”