AAPA Reports September 2014 Traffic

Preliminary traffic figures from the Association of Asia Pacific Airlines (AAPA) for the month of September 2014 show some moderation of growth in air passenger markets and steady growth in air freight demand.

A combined total of 20.8 million international passengers flew on the region's carriers in September, 3.5% more compared to the same month last year. Measured in revenue passenger kilometres (RPK), demand grew by 3.6%. However, offered seat capacity in September increased by 6.1%, considerably outpacing the underlying growth in demand, leading to a 1.8 percentage point drop in the average international passenger load factor to 76.3%.

Andrew Herdman

The ongoing pick up in international trade saw further growth in exports from key Asian manufacturing centres, helping to underpin a 5.3% increase in international air freight demand, as measured in freight tonne kilometres (FTK). Combined with a 4.0% growth in offered freight capacity, the average international freight load factor edged 0.8 percentage points higher to 64.1% for the month.

Commenting on the results, Mr. Andrew Herdman, AAPA Director General said, "Sustained by regional economic growth, the first nine months of the year saw a healthy 4.6% increase in the number of international passengers carried by Asia Pacific airlines to a combined total of 190.6 million. During the same period, air freight demand grew by 5.1%, continuing the positive momentum seen since the market bottomed out in the fourth quarter of 2013."

"Whilst we are seeing sustained growth in both passenger travel and air cargo demand, market conditions remain quite challenging. Passenger load factors have fallen back as a result of capacity outpacing the underlying growth in demand, maintaining downward pressure on yields. Asian airlines are carefully reviewing their operations to better match supply and demand on a route by route basis, with the aim of ensuring that further traffic growth helps to restore profitability," Mr. Herdman added.