Asia Pacific Airlines Register 8.2% Growth in September 2013

Preliminary traffic figures from the Association of Asia Pacific Airlines (AAPA) for the month of September 2013 show continued robust growth in passenger demand but persistently soft air cargo market conditions.

In September 2013, Asia Pacific airlines registered a solid 8.2% growth in the number of international passengers carried to an aggregate total of 18.0 million, supported by robust leisure and business travel markets. Measured in revenue passenger kilometre (RPK) terms, international passenger demand grew by 6.3%, whilst available seat capacity was up 5.2%, leading to a 0.8 percentage point increase in the average international passenger load factor to 78.4% for the month.

International air cargo demand met by Asia Pacific airlines, expressed in freight tonne kilometre (FTK) terms, declined by 2.1% in September compared to the same month last year, a continuation of the prolonged weakness seen in the air cargo market for the past two and a half years. Offered freight capacity increased marginally, by 0.8%, leading to a 1.9 percentage point contraction in the average international freight load factor, to 64.8% for the month.

Mr. Andrew Herdman, AAPA Director General said, "During the first nine months of the year, Asia Pacific airlines carried a combined total of 163 million international passengers, 5.5% more than in the same period last year. Sustained regional economic growth, as well as the recovery of the US economy, underpinned consumer and business spending, fueling further growth in passenger travel markets. On the other hand, Asian carriers experienced a 1.7% decline in international air cargo demand during the first three quarters of the year, with soft global trading conditions affecting exports from regional manufacturing centres. Air cargo volumes appear to have stabilised over the past few months but rates remain under pressure due to an overhang of excess freighter capacity. Whilst the continued steady growth in passenger demand is very encouraging, Asian airlines are still facing a challenging operating environment, marked by competitive pressures on yields and margins."