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Asia Pacific Airlines continued their strong performance in September, with both passenger and cargo markets demonstrating continuous growth. Despite a slight moderation in growth compared to previous months, the region’s carriers maintained a robust trajectory, underpinned by strong consumer and business demand.
The passenger market remained resilient, with international passenger traffic surging by 18.8% year-on-year. This growth was driven by a combination of factors, including the relaxation of travel restrictions, increasing consumer confidence, and a rise in leisure and business travel.
Moreover, the region’s carriers witnessed a significant uptick in long-haul travel, particularly on routes connecting Asia with Europe and North America.
Cargo Market Shows Resilience
The air cargo sector also continued to exhibit resilience, with international air cargo demand growing by 8.9% year-on-year. While this represents a slight slowdown compared to previous months, the sector remained strong, driven by factors such as e-commerce growth, supply chain disruptions, and increased global trade.
The average international freight load factor declined marginally to 60.2%, reflecting a slight increase in capacity compared to demand.
Key Highlights
- Passenger Traffic: Increased by 18.8% year-on-year to 29.2 million passengers in September.
- Revenue Passenger Kilometers (RPK): Grew by 19.3% year-on-year.
- Available Seat Kilometers (ASK): Increased by 18.7% year-on-year.
- Passenger Load Factor: Increased by 0.4 percent to 80.5%.
- Air Cargo Demand (FTK): Increased by 8.9% year-on-year.
- Available Freight Tonne Kilometers (FATK): Surged by 9.4% year-on-year.
- Freight Load Factor: Decreased by 0.3 percent to 60.2%.
A Positive Outlook for the Future
The Asia Pacific Airline industry’s positive momentum has positioned it for further growth in the coming months. While geopolitical tensions and economic uncertainties may pose challenges, the region’s strong economic fundamentals and increasing consumer affluence are expected to drive demand for air travel and cargo services.
However, the industry must continue to navigate a complex operating environment, including rising fuel costs, labor shortages, and supply chain disruptions. Airlines will need to focus on improving operational efficiency, enhancing customer experience, and adopting sustainable practices to ensure long-term growth and profitability.
In conclusion, the Asia Pacific airline industry has demonstrated remarkable bounce back and adaptability in the face of various challenges. The strong performance in September reinforces the positive outlook for the region’s aviation sector. As the industry continues to evolve, it will be crucial for airlines to strike a balance between growth and sustainability.
AAPA Director General’s Response
Commenting on the results, Mr. Subhas Menon, AAPA Director General said, “Asian airlines have seen robust growth in travel markets this year. Leisure demand remained buoyant, driving increases in tourist arrivals across the region. Meanwhile, business travel was underpinned by the region’s growing economies.”
Mr. Menon added, “Air cargo markets continued to expand, driven by the increases in export volumes from key manufacturing economies in Asia, including China, India, Japan and South Korea.”
“Overall, during the first nine months of the year, the number of international passengers carried by Asia Pacific airlines rose by 34% to an aggregate total of 269 million, while international air cargo demand registered a 14% increase compared to the same period last year.”
Looking ahead, Mr. Menon said, “The global economy is expected to grow by 3.2% this year and in 2025, supporting expansion in both travel and air cargo markets. However, this may be undermined by uncertainties stemming from increasing geopolitical risks and rising trade protectionism. Although the overall decline in jet fuel prices this year has helped to moderate rising costs, airlines continue to face challenges in fleet renewal and network growth, due to ongoing supply chain disruptions and aircraft delivery delays.”
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