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Asia Pacific airlines see an expansion in international air passenger demand and air cargo markets in May
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The region’s airlines carried 27.9 million passengers in May, up 23.9% year-on-year, according to the Association of Asia Pacific Airlines
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Air cargo demand in freight ton kilometers for Asian carriers jumped 17.9% y-o-y
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Profit margins remain under pressure with operating costs impacted by the strong US dollar and jet fuel prices averaging above the $100/barrel mark during the first five months of the year
Asia Pacific airlines saw an expansion in international air passenger demand and air cargo markets in May in tandem with accelerated global economic activity.
The region’s airlines carried a combined total of 27.9 million passengers in May, up 23.9% from the same month last year, according to the Association of Asia Pacific Airlines (AAPA).
Traffic averaged 89.4% of 2019 levels, according to AAPA.
Air cargo demand in freight ton kilometers for Asian carriers jumped 17.9% in May 2024 from May 2023.
In terms of revenue passenger kilometers, demand rose by 27.4% year-on-year, showing strength in long-haul markets. Taking into account the 26.4% expansion in seat capacity, average global passenger load factor rose marginally higher, by 0.6%, to 79% for the month.
“In the first five months of the year, Asia Pacific airlines carried a total of 144 million international passengers, reflecting a 44.8% increase compared to the previous corresponding period,” Subhas Menon, AAPA director general, said.
During that period, global air cargo demand rose by 16%. Average load factor also climbed by 1.4 percentage points to 61.4% on the heels of a 15.1% expansion in offered freight capacity.
Menon said the current pick up in international economic activity, backed by improvements in business confidence levels and higher consumer spending, “has boosted demand for both international travel and air cargo.”
Disruptions in ocean freight services likewise benefitted Asia Pacific airlines.
For the near term, Menon said encouraging trends in passenger and cargo traffic bode well for Asian airlines this 2024.
However, he added, “profit margins remain under pressure, with operating costs impacted by the strong US dollar and jet fuel prices averaging above the $100/barrel mark during the first five months of the year.”
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