Asia Pacific Airlines kicked off 2024 positively, experiencing significant passenger and cargo traffic growth, according to preliminary figures released by the Association of Asia Pacific Airlines (AAPA). This positive performance was driven by the Lunar New Year festivities, which typically lead to a surge in travel demand.
The region’s airlines carried 27 million international passengers in January, a significant 49.4% increase compared to January 2023. This translates to passenger traffic reaching 82% of pre-pandemic levels in 2019. Measured in revenue passenger kilometers (RPK), demand also rose by a robust 48.3% year-on-year, reflecting a solid appetite for regional travel.
However, despite the positive growth, the passenger load factor dipped slightly by 1.6 percentage points to 79.9% due to a considerable increase in seat capacity (51.3%).
Cargo Market Sees Continued Growth, Though Load Factor Dips
Like the passenger segment, the air cargo market sustained its upward trajectory in January, propelled by the Lunar New Year demand. International air cargo demand, measured in freight tonne kilometers (FTK), witnessed a healthy year-on-year growth of 22.5%. This growth builds upon the positive momentum observed in the latter part of 2023.
Nevertheless, the cargo load factor, mirroring the passenger segment, declined by 1.6 percentage points to 57.5%. This decrease can also be attributed to the faster expansion of offered freight capacity (25.8%) compared to demand growth. The recovery of belly-hold capacity on passenger flights primarily drives this expansion.
Looking Ahead: Optimism with Challenges
AAPA Director General, Mr. Subhas Menon, expressed optimism regarding the year ahead for Asian carriers, citing improving global economic forecasts. However, he acknowledged the intensifying competition airlines will face as capacity continues to be restored. Additionally, inflationary pressures and ongoing supply chain issues challenge the cost environment.
“The year started on a positive note for Asia Pacific airlines, as both international air passenger and cargo markets saw robust growth, supported by the timing of the Lunar New Year festive period. Travel demand was boosted by a rise in leisure travellers, while cargo markets benefitted from heightened demand for air shipments ahead of the festive period,” said AAPA Director General, Mr. Subhas Menon.
Despite these headwinds, Mr. Menon emphasized that airlines actively seek new growth opportunities while maintaining their commitment to safety and customer service.
“The upcoming year looks broadly positive for Asian carriers, given the renewed optimism on the global economic outlook. However, as capacity restoration progresses, airlines face intensifying competition. In addition, the cost environment remains challenging, as inflationary pressures continue to be felt amid ongoing supply chain issues. Nevertheless, airlines remain pro-active in seeking new growth opportunities, while maintaining the highest safety and customer service standards,” continued Mr. Menon.
Preliminary International Scheduled Services of Asia Pacific Airlines
| International | Jan-24 | Jan-23 | % Change |
| Passengers (Thousand) | 27,040 | 18,099 | 0.494 |
| RPK (Million) | 99,672 | 67,201 | 0.483 |
| ASK (Million) | 124,775 | 82,460 | 0.513 |
| Passenger Load Factor | 79.90% | 81.50% | – 1.6 pp |
| FTK (Million) | 5,589 | 4,564 | 0.225 |
| FATK (Million) | 9,713 | 7,723 | 0.258 |
| Freight Load Factor | 57.50% | 59.10% | – 1.6 pp |
- RPK = revenue passenger kilometers
- ASK = available seat kilometers
- FTK = freight tonne kilometers
- FATK = available freight tonne kilometers
Overall, the preliminary January 2024 traffic figures released by AAPA indicate a promising start to the year for the aviation industry in the Asia Pacific region.
