Carriers in the Asia-Pacific region saw 2020 start on a positive note, but their renewed optimism was short-lived as they now anticipate billions of dollars in lost revenue as the novel coronavirus (COVID-19) continues to inflict damage, according to the Association of Asia Pacific Airlines (AAPA).
AAPA’s latest traffic figures show that international air passenger markets remained busy in January 2020, with demand supported by travel ahead of the Lunar New Year celebrations, even as the COVID-19 outbreak in China began to spread.
International air cargo volumes in January were soft, in part due to the closure of factories in Asia for the holiday season.
Overall, 33.8 million international passengers were carried by the region’s airlines, representing a 2.7% increase compared to the same month last year. Passenger demand grew by 3.3% whilst available seat capacity expanded by 4.2%.
Meanwhile, international air cargo demand fell by 4.0% year-on-year in January, whereas offered freight capacity grew by 2.7%.
Andrew Herdman, AAPA director general, said, “The year started on a positive note, with further growth in demand for air travel recorded in January.”
“However, the renewed optimism was short-lived, as we are now in uncharted territory with the COVID-19 outbreak having had a very significant economic and social impact, leading to sharp falls in China-related traffic and wider effects on Asia Pacific travel and tourism markets, as well as severely disrupting global manufacturing supply chains.”
Herdman said airlines have responded to the sharp falls in demand by reducing the number of flights operated across route networks while striving to maintain international connectivity.
“The proliferation of uncoordinated travel advisories and border restrictions imposed by governments, whilst well-intentioned, are inconsistent with WHO recommendations and International Health Regulations, and only serve to amplify public concern,” he commented.
“From a business perspective, the impact of reduced demand is expected to lead to billions of dollars in lost revenue, mainly suffered by Chinese carriers and other Asia Pacific airlines.”
Airlines, he continued, are therefore focusing closely on making associated cost reductions and conserving cash resources in order to survive the current downturn, while remaining ready to respond positively as and when the situation shows signs of improvement.
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