Asia Pacific Airlines Traffic Results – August 2011

Kuala Lumpur, Malaysia – Preliminary traffic figures for the month of August released today by the Association of Asia Pacific Airlines (AAPA) showed continued growth in international air passenger markets, but international air freight demand remained relatively subdued.

Asia Pacific based airlines carried a combined total of 17.0 million international passengers in August, a 3.9% increase over the same month last year. International passenger traffic, measured in revenue passenger kilometre (RPK) terms, grew by 5.3%, reflecting good demand on long haul routes. Available seat capacity grew by 6.0%, resulting in a slight 0.6 percentage point fall in the average international passenger load factor to 79.3%.

For the region’s carriers, international air cargo demand, expressed in freight tonne kilometres (FTK), was 5.8% lower compared to the same month last year. Cargo capacity was reduced by 1.3%, resulting in a 3.1 percentage point decline in the average international freight load factor to 64.5%.

Commenting on the results, Mr, Andrew Herdman, AAPA Director General said, “For the first eight months of the year, Asia Pacific based airlines carried 126 million passengers, 3.5% up on the same period last year. However, air cargo demand remains relatively weak compared to last year’s strong performance, with a 3.8% decline in freight traffic for the first eight months of this year.”

Mr Herdman continued, "Passenger air travel demand is still quite strong, supported by continued growth in both business and leisure travel, but cargo markets remain weak. At the same time, airline margins are being pressured by high oil prices. Overall, Asia Pacific airlines are in a relatively favourable position, given many of the region’s economies are still reporting solid growth. However, the recent deterioration in the global economic outlook is cause for concern, and could potentially undermine both business and consumer confidence, leading to a more cautious view on medium term growth prospects.”