Asia Pacific Passenger Traffic Grows By 6.7% In August 2012

Manila Bulletin
October 4, 2012

MANILA, Philippines — The Association of Asia Pacific Airlines (AAPA) has sustained an increase in international air passenger traffic in August 2012 in contrast to continued weakness in air freight markets.

Asia Pacific airlines carried an aggregate total of 18.5 million international passengers in August, a 6.8% increase compared to the same month last year, led by relatively strong demand for regional travel.

International passenger traffic, measured in revenue passenger kilometre (RPK) terms, grew more by 5.3%. Offered seat capacity expanded by 3.5%, resulting in a 1.4 percentage point increase in the average international passenger load factor to 80.3% for the month.

Air freight markets remain depressed, as a result of weakening consumer confidence in the major developed economies leading to a corresponding slowdown in exports from Asia.

International air cargo demand, as expressed in freight ton kilometre (FTK) terms, was 4.4% lower in August compared to the same month last year.

Combined with a 4.1% reduction in offered freight capacity, the average international air cargo load factor was almost unchanged, at 64.6%.

Commenting on the results, Mr. Andrew Herdman, AAPA director general said: “The overall trend in international air travel demand remains encouraging, as reflected in the 7.9% increase in the number of passengers carried by Asia Pacific based airlines during the first eight months of this year.”

“While the overall pace of global economic activity is clearly slowing, Asian economies have so far remained relatively resilient with domestic demand still supporting business and leisure related travel.”

“However, we are still seeing persistent weakness in air cargo markets, with Asian carriers posting a 4.4% decline in international air cargo demand during the first eight months of the year, with no sign of any upturn.”

“Notwithstanding the evident slowdown in the global economy, oil prices remain high, averaging US$112 per barrel so far this year, further pressuring airline margins and industry profitability,” Herdman added.