Business Digest
Long haul demand lifts monthly traffic
October 1st 2014
Asia Pacific airlines carried 20.5 million international passengers in June, 1.6% more than the same month last year. Read More » Growth was slower compared with increases recorded in previous months, a trend that was in line with the moderation in tourist arrivals in South East Asia. on. Revenue passenger kilometres (RPK) grew by 2.5%, a reflection of comparatively stronger demand for long-haul travel. Passenger load factors continued to deteriorate on the back of relatively firm capacity expansion. June’s load factor averaged 77.6%, 2.2 percentage points lower than the same month last year, after accounting for a 5.4% expansion in available seat capacity.
Overall, the first half of the year saw a 4.7% increase in international passengers carried, to a combined total of 123.2 million, supported by growth in the region’s economies and an improvement in the U.S. and European economies. Measured in RPK terms, international passenger demand grew by 4.8%. Available seat capacity increased by 6.3%, which resulted in a 1.1 percentage point fall in the average international passenger, to 76.6%.
Steady growth for air cargo
The region’s airlines experienced growth in international air cargo markets in June, supported by a continued pick-up for Asian exports. Freight tonne kilometres (FTK) for international air cargo increased by 5.2% in June, compared with the same month last year. The volume recorded in June was slightly higher than the preceding month at 1.2%. Offered freight capacity grew by 4.1%, which produced a 0.7 percentage point improvement in the average international freight load factor, to 66.0% for the month.
During the first half of the year, Asia Pacific airlines recorded a 4.7% increase in international freight traffic. Offered freight capacity grew by 4.9%, leading to a 0.1 percentage point decline in the average international freight load factor, to 64.4%.
Freight continues to improve as capacity drags down passenger profits
Asia-Pacific airlines carried 22.1 million international passengers in July, an increase of 4.3% compared with the same month last year, boosted by strong regional demand. In revenue passenger kilometre (RPK) terms, demand growth was a slightly more measured at 4.0%. However, available seat capacity expanded by 5.7%, resulting in a 1.2 percentage point decline in the average international passenger load factor, to 78.8%, for the month.
Supported by expanding demand for exports from major regional manufacturing hubs, air freight growth accelerated in July when it recorded a 6.4% increase compared with the same month last year. For the third consecutive month, capacity expansion lagged growth in demand. In July, offered freight capacity increased by 3.2%, leading to a 2.0 percentage point increase in the average international freight load factor, to 65.3%.
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This report was compiled by the Research and Statistics Department of the AAPA Secretariat.
