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32 million more passengers in 2013 for Asia Pacific Airlines

Asia Pacific airlines members of the AAPA registered last year 6% growth or 220 million passengers. Strong economic development and rising purchasing power explain why air transport turns increasingly popular  in the region.

KUALA LUMPUR – Preliminary figures for the full calendar year 2013 released early this week by the Association of Asia Pacific Airlines (AAPA) reaffirmed the pattern of continued steady growth in international air passenger demand, in contrast to soft air cargo market conditions.

Asia Pacific airlines carried a combined total of 220 million international passengers in 2013, 12 million more than in the previous year, representing 6.0% growth. Regional economic growth remained a positive driver of increases in business and leisure travel demand, coupled with improving business and consumer confidence in the major developed markets. Reflecting comparatively strong demand on regional routes, international passenger traffic, measured in revenue passenger kilometre (RPK) terms, registered a more moderate 5.2% increase. Combined with a 4.8% expansion in available seat capacity, the average international passenger load factor reached 78.2%, 0.3 percentage points higher compared to the previous year.

International air cargo demand for Asia Pacific carriers, expressed in freight tonne kilometre (FTK) terms, recorded however a marginal contraction of 0.6% in 2013. It was the third year of decline but 2013 showed meanwhile a recovery compared to sharp contraction in freight traffic in previous years. In spite of the fall in demand, the year saw a 1.1% expansion in cargo capacity, resulting in a 1.1 percentage point decline in the average international freight load factor to 65.4%.

Commenting on the results, Mr. Andrew Herdman, AAPA Director General said, “Overall, Asia Pacific airlines recorded another year of solid growth in international passenger traffic in 2013. Regional economies slowed a little but maintained positive growth rates, while signs of recovery in Europe and a stronger pickup in the US economy led to broader improvements in business and consumer sentiment. Air cargo markets remained subdued in 2013, but picked up towards the end of the year in line with increasing demand for Asian exports in the major developed markets.”

Mr. Herdman added, “Domestic air travel markets in the Asia Pacific region also enjoyed strong growth, with domestic passenger numbers up 10% to an estimated 740 million for the year, led by China. Overall, therefore, Asia Pacific airlines carried close to 1 billion passengers in 2013, a significant milestone.”

Looking ahead, Mr. Herdman concluded, “Given expectations of a continuing modest improvement in global economic conditions, the outlook for Asian carriers remains broadly positive. Nevertheless, operating margins remain compressed as a result of weak cargo revenues and other competitive pricing pressures. Airlines are responding by investing in newer more fuel-efficient aircraft, other productivity improvements, and value added service enhancements.”

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Luc Citrinot a French national is a freelance journalist and consultant in tourism and air transport with over 20 years experience. Based in Paris and Bangkok, he works for various travel and air transport trade publications in Europe and Asia.

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