Business Digest
China demand brings in 4.7% jump in Asia-Pacific passengers
November 1st 2014
In July, Asia-Pacific airlines carried an aggregate total of 22.2 million international passengers, an encouraging 4.7% increase compared with the same month last year. Read More » A strong performance by the mainland Chinese economy, coupled with an improvement in the U.S.corporate environment boosted business and leisure travel demand for the region’s carriers. Measured in revenue passenger kilometres (RPK), international passenger demand grew by 4.8%, but was superceded by a faster 6.0% expansion in available seat capacity. This resulted in a 0.9 percentage point decline in the average international passenger load factor, to 79.1%, for the month.
For the year to July 31, Asia-Pacific airlines carried 145.5 million international passengers, 4.8% more than in the same period in 2013. Whilst a positive demand environment has helped support the matching 4.8% increase in RPKs during the period, new capacity has increased pressure on load factors. Overall, available seat capacity increased by 6.3% for the first seven months of the year, leading to a 1.1 percentage point fall in the average international passenger load factor, to 77.0%.
Asia-Pacific air cargo business improves
For the region’s carriers, international air cargo demand, in tonne kilometre (FTK), increased by 6.6% in July, compared with the same month last year. July’s year-on-year improvement is the biggest increase recorded for the sector for the year.
Both intra-Asia and inter-regional trade volumes continued to expand, lending support to international air cargo demand. Offered freight capacity increased by 3.3%, leading to a 2.0 percentage point rise in the average international freight load factor, to 65.3%, for the month.
During the first seven months of the year, Asia- Pacific airlines registered a 5.0% increase in international freight traffic, while offered freight capacity grew by 4.6%, which produced a 0.2 percentage point increase in the average international freight load factor, to 64.6%.
Surplus seats fragment passenger demand as cargo continues recovery
Preliminary figures for August show that the region’s airlines carried 23.0 million international passengers in August, 3.4% more than the same month last year, a result buoyed by better global economic environment. Demand in revenue passenger kilometre (RPK) terms grew by 4.2%, underscoring the relative strength of regional related travel. However, average international passenger load factor continued to decline, recording a 1.6 percentage point fall to 80.7% for the month, after accounting for a 6.1% increase in available seat capacity.
In August, air freight business continued to recover as air shipments of electronic consumer products increased. Asia-Pacific airlines recorded a 6.2% increase in air freight demand in freight tonne kilometres (FTK. Offered freight capacity grew by a slower 3.2%, which resulted in a 1.8 percentage point increase in the average international freight load factor, to 63.5%.
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This report was compiled by the Research and Statistics Department of the AAPA Secretariat.
