Preliminary financial performance figures
released by the Association of Asia Pacific Airlines (AAPA) show
that Asia Pacific-based carriers in aggregate reported a record
US$9.5 billion in net profits in 2010, a major turnaround from
US$1.7 billion in net losses suffered in the previous year.
The strong results were underpinned by a
resurgence of air travel and air freight demand, and operating
efficiencies including record high load factors.
International passenger traffic, measured in
revenue passenger kilometres, grew by 9.6% in 2010, whilst
international cargo traffic, expressed in freight tonne kilometres,
surged by 24%.
Combined revenues for Asia Pacific carriers
reached US$147 billion, 30% higher than the US$113 billion
reported in 2009. Passenger revenues rose by 26% to US$106 billion
whilst cargo revenues jumped 52% to US$22 billion.
Operating expenses increased by 18% to US$134
billion, mainly due to a 28% increase in fuel expenses to US$43
billion, the single biggest cost item. The share of fuel
expenditure as a percentage of total operating costs rose to 32%
in 2010, from 29% the previous year, as oil prices rose 29% to an
average of US$80 per barrel in 2010. Non-fuel expenditures grew by
13% to US$91 billion, with overall staff costs rising 12%.
Commenting on the 2010 financial results of Asia
Pacific carriers, Mr. Andrew Herdman, AAPA Director General said,
“Buoyed by a firm recovery in premium business travel and a very
strong rebound in demand for air freight, Asia Pacific carriers
saw a welcome return to profitability in 2010, after two years of
heavy losses. Asia Pacific airlines led the industry recovery,
reporting combined net profits of US$9.5 billion, reflecting a
6.4% net margin, well above the industry average. At the same
time, the region’s carriers are taking on a more active role in
international aviation policy debates which will shape the future
development of the industry as a key driver of social and economic
development.”
Looking ahead, Mr. Herdman said, “The medium and
long term prospects for Asia Pacific aviation remain very
positive, but the immediate outlook is somewhat clouded by the
sharp increase in oil prices this year, which may dampen the
global economic recovery. The lingering effects of the Japanese
earthquake are also still evident, although there are some early
signs of a recovery in demand for travel to and from Japan.”
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AAPA,
March 2011
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