Asia Pacific airlines record growth in passenger and air cargo demand
Monday, 26 January 2015 00:00
Preliminary traffic figures from the Association of Asia Pacific Airlines (AAPA) for the month of November 2014 show that both international passenger and air cargo markets recorded further growth in demand.
Strong regional trade activities helped underpin business related travel, contributing to a 5.5% increase in the number of international passengers carried by Asia Pacific airlines to a combined total of 21.1 million for the month. Measured in revenue passenger kilometres (RPK), demand increased by 3.9%, just under the 4.4% expansion in capacity. As a result, the average international passenger load factor declined by 0.3 percentage points to 74.9%.
International air freight demand accelerated in November, driven by strong growth in shipments of electronic goods going into the year-end festive season. In freight ton kilometre (FTK) terms, air cargo demand increased by 5.6%, with monthly volumes reaching the year’s high. Offered freight capacity grew by a comparatively modest 1.9%, leading to a 2.4 percentage point gain in the average international freight load factor to 68.3% for the month.
Commenting on the results, Andrew Herdman, AAPA Director General said, “Asia Pacific airlines continued to enjoy steady growth in air passenger demand, whilst air freight markets continued to advance on the back of further improvement in consumer sentiment within the region and robust trade with the United States. During the first eleven months of the year, the region’s airlines carried an aggregate total of 233.0 million international passengers, 4.6% more than the same period last year, whilst air freight markets registered a 5.1% increase.”
“Whilst the demand outlook for Asian airlines remains encouraging, market competition is still intense, putting pressure on yields. The recent decline in oil prices provides some relief, although the impact on airline profitability will also vary according to individual fuel hedging polices,” Herdman added.