Asia Pacific Airlines Traffic Results – September 2011

Kuala Lumpur, Malaysia – Preliminary traffic figures for the month of September released today by the Association of Asia Pacific Airlines (AAPA) showed sustained growth in international air passenger traffic, whilst international air freight markets continued to soften.

Asia Pacific based airlines flew a total of 16.0 million international passengers in September, a growth of 5.4% compared to the same month last year, underpinned by business and leisure demand on Asian routes. Measured in revenue passenger kilometre terms (RPK), international passenger traffic grew by 5.2%. With available seat capacity expanding by 6.8%, the average international passenger load factor fell 1.1 percentage points to 77.3%.

As a result of a slowdown in trade activities, Asia Pacific international air cargo demand, in freight tonne kilometre (FTK) terms, declined by 6.5% compared to the same month last year. Offered freight capacity contracted by 1.3%, resulting in a 3.5 percentage point decline in the average international air cargo load factor for the region’s carriers to 63.8% for the month.

Commenting on the results, Mr. Andrew Herdman, AAPA Director General said, “Overall, for the first three quarters of the year, Asia Pacific airlines saw a 3.7% increase in the number of international passengers carried, whereas international air cargo demand fell by 4.1%.”

Mr. Herdman continued, “Resilient Asian economies, with relatively strong domestic spending power, helped support leisure and business travel markets. However, a slowdown in export demand, as a result of the ongoing European economic crisis and softening North American economies, contributed to the fall in overall cargo traffic. As a result, Asian airlines have seen only modest revenue growth this year. At the same time, airlines have had to grapple with a 40% increase in jet fuel prices, squeezing what are typically already very thin margins.”

Mr. Herdman concluded, “Notwithstanding the current challenges, and uncertainty about the global outlook,optimism about future growth opportunities remains positive for Asia Pacific carriers. This sentiment is underpinning ambitious fleet expansion plans, as well as the establishment of a number of new carriers of varying business models, including international partnerships and joint ventures.”