A trusted source of Asia-Pacific commercial aviation news and analysis


AUGUST 2022

News Backgrounder

Passenger rebound at Asia-Pacific airports but margins minimal

next article »

« previous article


 

August 1st 2022

Print Friendly

Pent-up air travel demand is underpinning the Asia-Pacific aviation recovery, but airport financial margins remain far below pre-pandemic levels, Airports Council International (ACI) Asia-Pacific Outlook for the three months to June 30 reports. Read More »

Following a turbulent first quarter to March 31, dominated by suspended international air travel in several Asia-Pacific countries and geopolitical conflict in Eastern Europe, the Asia-Pacific and the Middle East are benefiting from strong passenger demand, the airport association said.

“Despite the improvement, the industry continues to face geopolitical instability in Eastern Europe and its subsequent impact on global macroeconomics, high inflation, rising energy prices and disruptions in supply chains. These external factors, to an extent, still negatively impact supply and demand for air travel,” the forecast said.

Asia-Pacific and the Middle East airports are carefully handling the risk of workforce shortages. “Compared with Europe and other parts of the world, airports in the two regions experienced, to a lesser extent, manpower shortages not limited to airports but to airlines, government agencies, ground handling, security and check-in,” the forecast said.

“This was mainly due to the long-term vision of several airports to retain staff despite the challenging times and to the moderate recovery of traffic compared with other regions. The Asia-Pacific is expected to have the slowest recovery of all regions, reaching only 62% of 2019 levels in 2022,” it said.

“This is giving our airports and other aviation stake holders the time to address the challenges of increasing demand while working on the introduction of digital technologies, re-skilling and up skilling staff and providing better career opportunities for their employees.”

ACI Asia-Pacific director general, Stefano Baronci, said: “As a result of a successful vaccination campaign covering an average of 74% of the population in the region, travel restrictions are being gradually phased out. Although 2022 looks to be a more positive year for the sector, there will be bumps in our road to recovery especially from the uncertain macroeconomic scenario.

“Easing of stringent travel protocols is driving traffic. In the April-June quarter, Cambodia, Singapore, India, Thailand, Malaysia and Australia withdrew restrictions on international air travel. Key hubs in these countries showed aggregated passenger traffic increased substantially from the end of February to early July.”

South Asia’s Bangladesh, Bhutan, India, Nepal, Pakistan, Sri Lanka, Maldives and Afghanistan and Bahrain, Kuwait, Oman, Saudi Arabia, UAE, Iraq, Iran, Jordan, Yemen and Qatar in the Middle East have recovered to approximately 85% of their Q2 2019 seat capacity. Emerging East Asia’s China, Mongolia and the Democratic People’s Republic of Korea are 15% of 2019 Q2 levels because of China’s zero COVID policy that has included weeks of lockdowns, especially in Shanghai. Most East Asian countries are heavily dependent on Mainland passengers.

Asia-Pacific and Middle East cargo markets remain robust, driven by a resurgence of air cargo business in China and the re-routing of Europe-Asia cargo through Middle Eastern hubs to avoid Russian airspace. Recent improvements in the supply chain and some easing of cargo restrictions in China are expected to ease market conditions and drive demand for air freight.

“Nevertheless, if airport financial margins continue to be far below pre-pandemic levels, the outlook is economically unsustainable,” the ACI outlook said. “Quarterly revenues remain 60% below 2019, a similar level to 2021, indicating revenues still are at unsustainably low levels, leading to large operating losses for airports. Total operating expenditures have declined in Q1 2022 compared with 2019. This decline has narrowed slightly compared with Q1 2021 and demonstrates airport operators are making efforts to limit expenditures.”

next article »

« previous article






Response(s).

Sonia Walcott says:

September 12th 2022 05:29pm


I tried getting a car loan sometime last year but my credit score of about 521 ruined the process. Since I was in desperate need of a car due to the nature of my new job, I resorted to making online research on how I could restore my credit to a minimum of 650 to enable me to qualify, after a few months of searching, I bumped into a blog and found positive reviews about HACK VANISH CREDIT SPECIALIST, So I reached out to them to explain my credit situation, they requested my info and necessary details and were able to get every derogatory item on my report erased and increased my FICO score to 788 within 6 days, I was amazed. They are fast and reliable. Anyone looking for a credit solution below is their contact details: Email: HACKVANISH @ GMAIL. COM Phone No. + 1 ( 7 4 7 ) 2 9 3 -8 5 1 4

Layla Cole says:

August 30th 2022 10:11am


Special thanks to HACK VANISH, a professional hacker I’ve been hiring for the past 2 years because, I find him to be an outstanding hacker who has aided me in various hacking-related issues, ranging from fixing my poor FICO credit score of about 437 TransUnion, 462 Equifax to 802 plus excellent score, tracking my cheating husband’s phone and currently has helped me recover my lost crypto funds from an online scam investment I recently ventured into, I must confess he is the best, quite brilliant, ever since I discovered him through a positive review I saw on Wallet Hub and reached out to him via Email: HACKVANISH @ GMAIL. COM, and Phone: +1(747) 293-8514, to which he responded in less than 10mins, I have never regretted working with him, he’s been quite helpful and highly efficient. I Would recommend his services to anyone without hesitation.

SPEAK YOUR MIND

Your email address will not be published. All fields are required.

* double click image to change