Business Digest
Aircraft over-capacity stalking Asia-Pacific carriers
December 1st 2014
Asia-Pacific airlines continued to record encouraging growth in international passenger demand in August, underpinned by sustained expansion in emerging markets and continued improvement in the U.S. economy. Read More » The region’s airlines carried 23.2 million international passengers in the month, 4.5% more than in the same month last year.
Demand, in revenue passenger kilometres (RPK), grew by 5.0%, which underscored comparatively stronger demand for long haul travel. Available seat capacity grew by 6.3%, leading to a 1.0 percentage point decline in the average international passenger load factor, to 81.2%.
In the first eight months of the year, Asia-Pacific airlines carried 168.7 million international passengers, 4.7% more than in the same months in 2013. Year-on-year demand growth has tapered during the year as travel markets were affected by political situations in the region, including Thailand. Measured in RPKs, demand grew by 4.8%, while available seat capacity expanded by 6.3%, which resulted in a 1.1 percentage point fall in the average international passenger load factor, to 77.6%.
Air freight load factors continue to improve across the region
Asia-Pacific airlines continued to experience improved international air cargo demand in August, with trade activities benefitted from an improved Chinese economy and increases in exports to the U.S. and Japan. Demand in freight tonne kilometre (FTK) terms grew by an encouraging 5.8% compared with the same period last year. Offered freight capacity increased by 3.3%, leading to a 1.5 percentage point rise in the average international freight load factor, to 63.2%, for the month.
In the first eight months of the year, Asia-Pacific airlines posted a 5.1% increase in international freight traffic, while offered freight capacity grew by 4.4%, resulting in a 0.4 percentage point increase in the average international freight load factor, to 64.4%.
Capacity still forecast to outpace airline growth
More than 20.8 million international passengers flew on the region’s carriers in September, 3.5% more than in September 2013. Measured in revenue passenger kilometres (RPK), demand grew by 3.6%, however offered seat capacity for the month increased by 6.1%, considerably outpacing the underlying growth in demand, leading to a 1.8 percentage point drop in the average international passenger load factor, to 76.3%.
The ongoing pick up in international trade resulted in growth in exports from key Asian manufacturing centres, which helped to underpin a 5.3% increase in international air freight demand measured in freight tonne kilometres (FTK). Combined with a 4.0% growth in offered freight capacity, the average international freight load factor edged 0.8 percentage points higher, to 64.1%, for the month.
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This report was compiled by the Research and Statistics Department of the AAPA Secretariat.
