Recovery is still fragile, says AAPA
KUALA LUMPUR – Preliminary figures released by the Association of Asia Pacific Airlines (AAPA) indicate that the start of the recovery for the airline industry in the region may be underway.
AAPA reported that member airlines carried a total of 10.8 million international passengers in September, effectively matching the numbers carried in the same month last year for the first time in more than 12 months.
International passenger traffic measured in revenue passenger kilometers (RPK) was 0.9 percent lower in September, but also marked a significant improvement compared to the steep monthly declines recorded over the past year.
The traffic results were achieved despite a 6.1 percent reduction in seating capacity, pushing the average international passenger load factor 4.1 percentage points higher, to 76.4 percent for the month.
Andrew Herdman, AAPA director general said, “The September traffic figures offer some encouragement amidst signs of a continuing pickup in consumer confidence and economic activity, led by the Asia Pacific region.
“Nevertheless, airlines are still facing significant challenges. For the first nine months of the year, our overall international passenger numbers were nine percent down compared to last year.
“Shrinking traffic volumes, coupled with lower yields, led to sharply lower revenues and heavy losses for most carriers.
“Despite capacity cutbacks, and other cost reduction efforts, airlines are still struggling to restore profitability.
“Meanwhile, rising oil prices are driving up costs, and will act as a brake on the wider economy. Overall, as things stand now, the recovery still looks quite fragile.â€
Ian Jarrett
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