Asia Pacific airlines sustain passenger growth in June

The Association of Asia Pacific Airlines (AAPA) has confirmed its continued growth in international passenger demand in June 2015 with depressed cargo markets.

AAPA said the region’s airlines carried 21.9 million international passengers in June, 5.9% more than in the same month last year.

Overall demand has remained relatively resilient, led by robust leisure travel demand going into the summer holiday season.

Measured in revenue passenger kilometer (RPK) terms, international passenger demand increased by 6.6%. Available seat capacity expanded by 6.1%, leading to a 0.3 percentage point increase in the average international passenger load factor to 77.8% for the month.

The recent moderation in air cargo markets extended into the month of June, with demand in freight tonne kilometre (FTK) terms registering a slight 0.5% decline compared to the same month last year. With offered freight capacity increasing by 2.5% for the month, the average international freight load factor fell by 1.9 percentage points to 64.1%.

Commenting on the results, AAPA director-general Andrew Herdman said: “Overall, the first half of the year saw Asia Pacific airlines carry a combined total of 135.6 million international passengers, a firm 9.3% increase compared to the same period last year.”

“Regional travel markets, notably including travel to Japan, remained generally strong, although the Korean market was affected by the recent MERS outbreak. Long-haul travel demand to and from North America was also encouraging,” said Herdman.

Herdman said air cargo demand grew by 4.8% during the first half of 2015, but the pace of growth has moderated during recent months after the earlier boost in demand due to the US West Coast ports strikes wore off.

Looking ahead, Herdman said growth in demand for air passenger travel is expected to remain positive, driven by competitive fares and continued growth in regional economies.

“The outlook for air cargo markets is more uncertain, with signs of a slowdown in global trade. In general, Asian carriers remain focused on improving profitability, including careful adjustments to route networks in response to changing patterns of demand,” said Herdman.