Wednesday, January 31, 2024
The Association of Asia Pacific Airlines (AAPA) released preliminary traffic figures for the entire calendar year of 2023 today, revealing substantial growth in international passenger demand. This surge was driven by a heightened enthusiasm for travel following the removal of the remaining pandemic-related travel restrictions in the region.
Throughout the year, the airlines in the region experienced a remarkable 161.0% increase in the number of international passengers, reaching a combined total of 278.5 million. In terms of revenue passenger kilometres (RPK), demand witnessed a robust 131.0% rise, particularly demonstrating strength in short-haul markets. The surge in demand was facilitated by a 106.2% expansion in available seat capacity, as airlines reinstated flights both within the region and across different regions. Notably, the international passenger load factor rebounded to pre-pandemic levels, averaging 80.9% in 2023—a notable 8.7 percentage point increase compared to 2022.
Conversely, the air cargo markets faced various challenges entering 2023, including inflation, a robust US Dollar, and government policies that dampened trade activity and household spending power. Despite these headwinds, the latter part of the year witnessed a robust growth in demand, driven by an upswing in e-commerce shipments. In December, international air cargo demand, measured in freight tonne kilometres (FTK), experienced a significant year-on-year growth of 13.2%, narrowing the overall decline recorded for the entire year of 2023 to 2.8%. Offered freight capacity increased by 6.4%, resulting in a 5.8 percentage point decline in the average international freight load factor for the year, settling at 60.7%.
Commenting on the results, Mr. Subhas Menon, AAPA Director General said, “International passenger traffic carried by Asian airlines grew solidly by 161% in 2023. Passenger numbers averaged 72% of pre-pandemic 2019 levels, up significantly from 28% in 2022.”
“Whilst international air cargo demand declined by 2.8% for the full year, the last quarter of 2023 saw an 8.2% increase compared to the previous corresponding period.”
Mr. Menon added, “Overall, 2023 was a good year for the region’s carriers. Passenger demand grew unabated, while air cargo markets ended the year on a high note. The gradual restoration of flight frequencies and city-pair connections over the course of the year provided more options for travelers, further stimulating demand. However, as operations were progressively restored, airlines faced capacity constraints in addition to increased cost pressures driven by volatile fuel prices, a strong US Dollar and inflationary impacts on operations.”
Looking ahead, Mr. Menon noted, “2024 promises to be another good year for Asian airlines. International passenger traffic is poised to return to pre-pandemic levels in the coming months, buoyed by the return of tourism and resilient expansion of the region’s economies. However, there remain some uncertainties, including the potential erosion in business and consumer sentiment amid rising geopolitical risks. Against this background, the region’s airlines remain vigilant to market influences while investing for future growth.
Sunday, April 28, 2024
Sunday, April 28, 2024
Monday, April 29, 2024
