In 2009, Association of Asia Pacific Airlines
(AAPA) member airlines carried 132.9 million international
passengers, 5.7% fewer than in the previous year. Passenger
traffic measured in revenue passenger kilometres (RPK) fell by
6.5%, indicating particular weakness in demand on long-haul
routes. Available seat capacity was reduced by 6.1%, resulting in
a marginal drop in the average passenger load factor by 0.4
percentage points to 74.6%.
AAPA international air cargo traffic for 2009,
expressed in freight tonne kilometres (FTKs), suffered an even
more significant decline, down 11.0% for the year. Airlines made
corresponding reductions in cargo capacity, resulting in an
average cargo load factor of 66.1%, almost unchanged from the
previous year.
Commenting on the results, Mr. Andrew Herdman,
AAPA Director General said, “We have been through downturns
before, but none as severe as we’ve experienced in the past two
years. As a result of the global recession, demand for passenger
travel and air cargo shipments both recorded sharp falls. The
business impact on airlines was even more dramatic as the collapse
in corporate travel and intense price competition in a shrinking
market saw airline revenues falling by 20-25%. Airlines responded
by cutting capacity and redoubling efforts to reduce costs
throughout the business, but were unable to fully offset the
effects of sharply lower revenues. Meanwhile oil prices,
representing our single biggest cost, fell back from their 2008
peak but remained extremely volatile. Overall, Asia Pacific
airlines are expected to report significant losses for 2009,
following similar heavy losses suffered in 2008.”
Looking ahead, Mr. Herdman said, “On a more
optimistic note, traffic trends in recent months have shown signs
of recovery, in line with the improving global economic outlook
led by developing economies in the Asia Pacific region. The cargo
business is regaining some of its dynamism, and passenger demand
on short haul leisure routes within the region has already picked
up, although business travel demand is recovering more slowly.
Asia Pacific airlines remain focused on conserving cash,
rebuilding damaged balance sheets, and carefully managing capacity
to match demand as they work towards restoring profitability.
Whilst we remain hopeful about future prospects, the outlook for
2010 very much depends on the sustainability of what still appears
to be a rather fragile global economic recovery.”
See recent travel news from:
Travel News Asia,
AAPA,
December 2009
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