News
Asia-Pacific airline industry association reports robust 2015 profits but declining yields
May 27th 2016
Asia-Pacific carriers reported a combined net profit of $6.9 billion in calendar year 2015, sharply reversing a $1.2 billion 2014 loss, the Association of Asia-Pacific Airlines (AAPA) has reported. Read More »
It is not all good news for the region’s airlines, given the profits were largely due to the significantly lower fuel price. Carriers' revenues in 2015 dropped 5.4%, to $128.4 billion, because of a considerable decline in yields, particularly in the premium cabin.
Regional heavyweights such as Singapore Airlines (SIA), Cathay Pacific Airways and Qantas Airways have warned of tough market conditions that have led to declining airfares, while Flight Centre on Monday issued a shock profit warning due in part to lower than expected commissions from declining air fares.
The cargo sector continued to perform poorly last year. Overall freight revenues declined 1.7%, to $18.5 billion, despite a 2.1% increase in overall cargo traffic.
"Asian carriers are encouraged by the sustained growth, but continue to face a challenging operating environment characterized by intense competition, cost pressures and volatile currency markets," said AAPA director-general, Andrew Herdman.
