Preliminary May 2024 traffic figures released by the Association of Asia Pacific Airlines (AAPA) showed solid expansion in both international air passenger demand and air cargo markets, in tandem with an acceleration in economic activity globally.
In May, the region’s airlines carried a combined total of 27.9 million international passengers, 23.9% more than in the same month last year. Traffic averaged 89.4% of 2019 levels. Measured in revenue passenger kilometres (RPK), demand grew by 27.4% year-on-year, reflecting strength in long haul travel markets. After accounting for a 26.4% expansion in available seat capacity, the average international passenger load factor edged marginally higher, by 0.6 percentage points to 79.0% for the month.
Driven by buoyant trade activity within the region and globally, Asian carriers saw international air cargo demand in freight tonne kilometres (FTK) register a solid 17.9% year-on-year growth in May. The average international freight load factor also climbed higher, by 1.4 percentage points to 61.4%, following a 15.1% expansion in offered freight capacity.
Subhas Menon, AAPA Director General said, “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. During the same period, international air cargo demand grew by 16.0%.”
Menon added, “The current pick-up in global economic activity, supported by improvements to business confidence levels and increased consumer spending, has boosted demand for both international travel and air cargo. Asia Pacific airlines, being major players in the air cargo markets, have also benefitted from disruptions to ocean freight services.”
Looking ahead, Menon said, “Encouraging trends in passenger and cargo traffic bode well for Asian airlines this year, following strong traffic performance for the year 2023. However, profit margins remain under pressure, with operating costs impacted by the strong US Dollar and jet fuel prices averaging above the US$100 per barrel mark during the first five months of the year. Overall, Asian airlines remain committed to maintaining stringent cost controls across their operations, alongside a proactive pursuit of growth opportunities.”
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