Home / Shipping / Aviation/ Asia Pacific airlines carried 356.6 million international passengers in 2018

Asia Pacific airlines carried 356.6 million international passengers in 2018


Comments / {{hitsCtrl.values.hits}} Views / Monday, 4 March 2019 00:00

Facebook

Preliminary traffic figures from the Association of Asia Pacific Airlines (AAPA) for the full calendar year 2018 show solid growth in international air passenger demand, with continued expansion in the global economy lending support to business and leisure travel markets throughout the year.

Air cargo demand growth eased after a strong 2017, reflecting slowing export activity amid increasing uncertainty over international trade policies.

Overall, the region’s airlines recorded a 7% increase in the number of international passengers carried to a combined total of 356.6 million in 2018. In revenue passenger kilometres (RPK) terms, demand increased by 6.9%, reflecting broad-based demand on both short and long-haul markets. After accounting for a 6% increase in available seat capacity, the average international passenger load factor edged 0.6 percentage points higher to 80.6% for the year.

International air cargo demand as measured in freight tonne kilometres (FTK) grew by 3.9% in 2018, moderating somewhat compared with the strong 9.6% increase registered in the previous year. Offered freight capacity for the year grew by 6.6%, outpacing demand. As a result, the average international freight load factor for the year 2018 declined by 1.6 percentage points to 63.3%.

Commenting on the results AAPA Director General Andrew Herdman said: “International passenger traffic carried by Asian airlines grew by 7% in 2018, even stronger than the 6.4% growth achieved in the preceding year. New routes and frequencies provided more options to travellers, sustaining the growth in demand. In addition, whilst air fares rose in response to higher oil prices, ticket prices remained relatively affordable, capped by stiff competition. Whilst international air cargo demand recorded an encouraging 3.9% increase for the full year, growth slowed significantly in the closing months of the year as business confidence in the global manufacturing sector weakened in response to trade policy tensions.”

“Overall, in 2018, the region’s airlines benefitted from robust growth in passenger traffic and further expansion in cargo demand. Higher average airfares and record high load factors lifted passenger yields after several years of declines. Cargo yields also firmed slightly despite falling load factors. However, cost pressures continued to increase, with higher fuel expenditure driven by a 30% increase in jet fuel prices which averaged US$85 per barrel for the year, despite falling back significantly towards the end of the year.”

Looking ahead, Herdman said, “Whilst expectations of continued moderate growth in the global economy should lend further support to travel markets in the coming months, there are some downside risks including weakness in trade activity and potential erosion in business and consumer sentiment. The region’s airlines are alert to such factors which may affect the market environment, but remain focused on cost management, and investing in future growth opportunities.”


Share This Article

Facebook Twitter


DISCLAIMER:

1. All comments will be moderated by the Daily FT Web Editor.

2. Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.

3. We may remove hyperlinks within comments.

4. Kindly use a genuine email ID and provide your name.

5. Spamming the comments section under different user names may result in being blacklisted.

COMMENTS

Today's Columnists

State of the economy of Sri Lanka

Saturday, 21 September 2019

I am not an economist nor do I profess to be an economic analyst. The views expressed in this presentation are those of a layman who has always been interested in the economic progress of Sri Lanka.


Premadasa, Père et Fils

Saturday, 21 September 2019

We are what time, circumstances and history has made of us. We are trapped in history. At age 77, I refuse to trap history in my mind. This essay is an obligation to history. Although J.R. Jayewardene introduced ‘Executive Presidentialism’, coer


Economy, business community and the Prime Minister

Friday, 20 September 2019

The speech made by Prime Minister Ranil Wickremesinghe as the Chief Guest of the Sri Lanka Economic Summit 2019 deserves very careful consideration by the country due to several reasons. This will no doubt be his last speech on economic policy to be


Sri Lanka needs to invest more on soft infrastructure

Friday, 20 September 2019

Developing countries like Sri Lanka will have to prepare for further downside risks in 2020 with the growing debt problems and the growth problems in Europe and the slowdown in Asia. Slower growth is already visible in weakening global trade and comm


Columnists More