Asia Pacific airlines report positive numbers

Preliminary figures for the month of June released today by the Association of Asia Pacific Airlines (AAPA) reaffirm the strength of the ongoing economic recovery, with significant growth reported for both passenger and freight traffic.

Asia Pacific-based airlines carried a total of 15.1 million international passengers in June, a sharp 25.2 per cent gain compared to the depressed volumes seen in the same month last year.

International passenger traffic, measured in RPKs grew by 19.0 per cent, indicating particularly strong growth on short-haul routes.

Available seat capacity grew by a moderate 6.4 per cent, resulting in an 8.5 percentage point increase in the average international passenger load factor to 79.5 per cent.

International air cargo demand also remained robust in June, with Asian carriers reporting a 30.4 per cent growth in freight tonne kilometres compared to the same month last year.

Even with a 22.1 per cent expansion in freight capacity, the average international cargo load factor grew by 4.5 percentage points to reach 70.8 per cent.

Commenting on the results, Andrew Herdman, AAPA Director General said, “During the first half of the year, Asia Pacific carriers carried 89 million international passengers, 14.9% up on the same period last year, spearheaded by a strong recovery in regional traffic.

"At the same time, international air cargo demand climbed by 34.8%, marking a dramatic recovery from the steep declines in international trade we experienced in the same period last year.

“Asia Pacific-based airlines have seen a solid recovery in leisure and business travel, as well as robust air cargo demand, with overall traffic back to pre-recession levels.

"Capacity increases have been relatively restrained, leading to higher load factors and improving cost efficiencies as airlines work towards restoring profitability.

“The business outlook for the coming months remains broadly positive, with the International Monetary Fund projecting a global economic growth rate of 4.6% for the year, led by 9.2% growth in Asia’s more dynamic economies.

"Airlines are well positioned to meet the expected growth in demand, through a combination of new aircraft deliveries and further improvements in fleet utilisation.

"However, even with an improving revenue environment, strict cost disciplines are still the key to success in this business.”