Asia Pacific carriers reduce losses

Preliminary financial performance figures released late last week by the AAPA show that Asia Pacific-based carriers reported significantly lower aggregate losses in the 2009 calendar year.

Net losses for 2009 totalled US$2 billion, compared to aggregate losses of US$8.8 billion recorded in 2008.

Declining revenues as a result of weak traffic demand and falling yields were partially offset by lower fuel prices and effective cost control measures.

Combined revenues for Asia Pacific carriers totalled US$114.2 billion, 16.1 per cent lower than the US$136.1 billion reported in 2008.

As a result of the global recession, international passenger and air freight demand fell for two consecutive years.

International passenger traffic measured in revenue passenger kilometres fell by 4.7 per cent in 2009, with particular weakness on premium long-haul routes, whilst international air cargo traffic expressed in freight tonne kilometres, suffered an even more significant decline, down 10 per cent for the year reflecting the slump in international trade.

The fall in revenues was exacerbated by lower average passenger fares and shipping rates in a generally weak market.

Commenting on the 2009 financial results, Andrew Herdman, AAPA director general said, “The downturn in global economic activity over the past two years has had a very severe impact on the aviation industry.

"Asia Pacific carriers were particularly hard hit by the sharp declines seen in the premium business travel and air freight markets.

"Airlines reacted appropriately by moving quickly to adjust capacity, and introducing a range of measures to restrain costs throughout the business...

"Provided the current momentum is sustained, Asia Pacific airlines are poised to spearhead the recovery in the aviation industry, with an anticipated further improvement in financial performance for the year 2010 following two years of heavy losses.”