Asia Pacific airlines passenger traffic up 6% in July

Monday, 29 August 2011 00:00 - - {{hitsCtrl.values.hits}}

Preliminary traffic figures for the month of July 2011 released by the Association of Asia Pacific Airlines (AAPA) show a continuation of recent trends, with steady growth in international air passenger travel, but international air freight markets remained relatively subdued.

Collectively, airlines based in the Asia Pacific region flew a total of 17.4 million international passengers in July, a 5.2% increase compared to the same month last year.

Measured in revenue passenger kilometre terms (RPK), international passenger traffic grew by 6.4%, boosted by a rise in demand for long haul travel during the holiday season. The average international passenger load factor declined marginally, by 0.3 percentage points to 81.2%, on a 6.8% growth in available seat capacity.

International cargo demand, measured in freight tonne kilometres (FTK), was 4% lower than in the same month last year, as demand for Asian exports has slowed down after last year’s strong rebound. Offered freight capacity matched that of the same month last year, reflected in a 2.9 percentage point decline in the average international freight load factor to 66.9%.

Commenting on the results, Andrew Herdman, AAPA Director General said: “During the first seven months of the year, Asia Pacific based airlines carried a total of 109 million international passengers, 3.4% more than in the same period last year. Growth rates were held back by the substantial decline in Japanese traffic as a result of the earthquake, but this market is recovering, albeit slowly. However, with 6.8% growth in airline seat capacity outpacing the growth in demand, the average international passenger load factor for the year to date fell by 1.9 percentage points to 76.7.”

“Airlines have seen only modest revenue growth this year as a result of slightly slower than expected growth in the passenger business, and a lacklustre air cargo market. At the same time, high oil prices have seen jet fuel averaging $130 per barrel, compared to $90 in 2010. As a result, airline margins have been severely squeezed, with profitability suffering accordingly,” Herdman added.

“Economic growth rates in Asia remain positive, but recent signs of a further slowdown in the US and Europe are a cause for concern, adding further uncertainty to the global outlook for the rest of the year. Notwithstanding the current challenges, optimism about future growth opportunities remains positive, and is underpinning ambitious fleet expansion plans, as well as the establishment of a number of new airlines, including international partnerships and joint ventures.”