Asian airlines carry more international passengers
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Airlines based in the Asia Pacific region flew a total of 17.4 million international passengers in July, 5.2% up year-on-year, according to data released today by the Association of Asia Pacific Airlines (AAPA). Measured in revenue passenger kilometre (RPK) terms, international passenger traffic grew by 6.4%, boosted by a rise in demand for long-haul travel during the holiday season. Average load factors declined marginally, by 0.3 percentage points to 81.2%, on a 6.8% growth in available seat capacity.
For 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, although the AAPA noted that this market is slowly recovering. A 6.8% expansion of airline seat capacity however, meant that average load factors fell 1.9 percentage points to 76.7% during this period.
Andrew Herdman, AAPA Director General said; “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 US$130 per barrel, compared to US$90 in 2010. As a result, airline margins have been severely squeezed, with profitability suffering accordingly.”
Herdman continued, “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.”
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