High business confidence sustains positive outlook for Asian airlines

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Demand from both international air passenger and air cargo markets continues to be robust, reflecting the ongoing global economic upswing, according to the Association of Asia Pacific Airlines (AAPA), citing traffic figures for November it released recently.

Boosted by strong business and leisure travel demand, the region’s airlines carried a combined total of 25.9 million international passengers in November, 9.3% more than the same month last year. Demand increased by 9.4% while available seat capacity expanded by 7.3%, leading to a 1.5 percentage point increase in the average international passenger load factor to 78.8% for the month.

Solid expansion in new business orders, underpinned by strong demand from advanced economies, helped support further growth in air cargo volumes for the region’s airlines. As a result, demand climbed 9.2% higher in November. Growth in demand significantly outpaced the 4.7% expansion in offered freight capacity, resulting in a 2.9 percentage point increase in the average international freight load factor to 69.4% for the month.

Andrew Herdman, AAPA director general, commented, “With business and leisure travel demand spurred by steady growth in the global economy, the first eleven months of the year saw a healthy 6.0% increase in the number of international passengers carried by Asian airlines to a combined total of 288 million. Within the same period, international air cargo demand increased by 10.0%, on the back of the firm pick-up in global trade activities.”

Looking ahead, Herdman added, “2017 is expected to end on a positive note for both passenger and cargo traffic given current trends. With the global economy riding on positive business and consumer confidence levels amid continued expansion in order books, the demand outlook for Asian carriers remains positive.”

Photo: Z3144228