Business Digest
Over-capacity containing bottom line growth
September 1st 2014
Asia-Pacific airlines saw a firm 6.8% increase passengers carried, to 20.3 million international passengers in May, almost unchanged from the 6.7% year-on-year growth recorded in April. Business and leisure travel markets continued to benefit from an overall improvement in the global economy, as reflected in the 6.5% increase in international passenger traffic measured in revenue passenger kilometres (RPK). Read More » Combined with a 6.7% expansion in capacity, the average international passenger load factor declined by 0.2 percentage points, to 74.3%, for the month.
For the first five months of the year, the region’s airlines registered an encouraging 5.4% increase in international passengers carried, to 102.7 million. In RPK terms, international passenger demand climbed by 5.2%. Coupled with a 6.5% expansion in available seat capacity, the international passenger load factor averaged 76.5%, which was 0.9 percentage points lower than the same period last year.
Asia-Pacific air cargo outlook brightens
For the region’s carriers, international air cargo demand in freight tonne kilometres (FTK) increased by 5.4% in May, driven by a pick-up in global trade. The international freight load factor edged higher by 0.6 percentage points, to 65.0%, on a 4.5% expansion in freight capacity, which put Asia-Pacific carriers well above the global average of 48.5%.
In the first five months of the year, Asia-Pacific airlines recorded a 4.6% increase in international freight business, but freight capacity grew by 5.0%, which resulted in a 0.2 percentage point fall in the average international freight load factor, to 64.1%. The outlook for the region’s freight markets is positive, with improving business confidence signaling growth in the months ahead.
Asia-Pacific carriers benefit from global recovery
Asia-Pacific airlines carried 20.6 million international passengers in June, 2.1% more than the same month last year. But compared with previous months, traffic growth was relatively slower with leisure markets partly affected by the political situation in Thailand. Measured in revenue passenger kilometres (RPK), demand grew by 2.5%, but available seat capacity increased by 5.3%. The demand/capacity mismatch resulted in a 2.1 percentage point fall in the average international passenger load factor, to 77.7%, for the month.
Air freight business continued to recover in June, helped by positive consumer and business sentiment in major developed economies. Overall, air freight, measured in freight tonne kilometres (FTK) grew by an encouraging 4.7% compared with the same month last year. The average international freight load factor rose for the second consecutive month, by 0.8 percentage points, to 66.1%, for the month on a 3.4% growth in available capacity.
* Click here for a comprehensive AAPA monthly statistics digest.
This report was compiled by the Research and Statistics Department of the AAPA Secretariat.
