Asia Pacific Airlines Traffic Results – March 2011

Kuala Lumpur, Malaysia – Preliminary traffic figures for the month of March released today by the Association of Asia Pacific Airlines (AAPA) reflect some moderation in demand growth for both passenger travel and air freight, partly as a result of the effects of the Japanese earthquake on travel patterns and trade within the region. In aggregate, Asia Pacific based carriers carried 15.5 million international passengers in March, a 1.0% decline compared to the same month last year. Passenger traffic measured in revenue passenger kilometre terms (RPK) fell by 0.8%, whereas available seat capacity increased by 6.3%, resulting in a 5.4 percentage point drop in the average international passenger load factor to 74.8%.

International air cargo traffic demand as expressed in freight tonne kilometres (FTK) saw 0.4% growth compared to the same month last year. However, available freight capacity increased by 5.0%, resulting in a 3.2 percentage point fall in the average international cargo load factor to 70.4%.

Commenting on the results, Mr. Andrew Herdman, AAPA Director General said, “The March traffic figures to some extent reflect the consequences of the earthquake in Japan which led to significant disruptions to normal travel patterns. Japan generally accounts for about a fifth of overall traffic within the Asia Pacific region, and we saw sharp falls in demand for travel to, from and within Japan in the weeks following the earthquake. Demand for business travel has been less affected. Consumer confidence is still fragile but, more recently, there are some tentative signs of a recovery in demand for leisure travel, and a number of trade campaigns being launched to promote travel and tourism both to and from Japan. Japan also plays an important role in global production and supply chains, and the air cargo industry is working hard to support efforts to overcome component shortages and restore normal production flows.”

Mr Herdman added, “Looking at the first quarter of the year, overall passenger traffic for Asia Pacific airlines still grew by 3% compared to the same period last year. International air cargo traffic for the first quarter also grew modestly, up 1%, following the very strong rebound in demand we experienced in 2010.”

Mr Herdman concluded, “Whilst the outlook for continued regional and global economic growth remains positive, the lingering effects from the Japanese earthquake will continue to have an impact on patterns of travel demand in the second quarter of the year. More generally, we remain very concerned by the continued rise in oil prices, which are already pushing up the cost of travel and threatening to undermine global economic growth.”