Robust passenger, cargo demand forecast for Asian airlines in 2H

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Asian air carriers can look forward to further growth in passenger and cargo markets in the second half of 2017, as June continued the sustained demand experienced by the airline industry in recent months, predicts the Association of Asia Pacific Airlines (AAPA).

In June, broad-based increases in new export orders led to Asian airlines posting a firm 10.0% year-on-year increase in international air cargo demand as measured in freight tonne kilometers. Offered freight capacity increased by 4.8%, leading to a 3.1 percentage point increase in the average international freight load factor to 66.2%.

Meanwhile, the number of international passengers carried by the region’s airlines increased by 4.4% in June to an aggregate total of 25.2 million, with the upturn in global economic activity supporting business and leisure air travel demand. Reflecting continued strength in long-haul travel markets, demand in revenue passenger kilometer terms grew by 8.1%. Combined with the 7.1% increase in available seat capacity, the average international passenger load factor edged 0.7 percentage points higher to 79.4% for the month.

In the first half of the year, Asian airlines reported a 10.4% increase in international air cargo traffic volumes, supported by an upswing in export orders for both the leading emerging markets and advanced economies. “Global trade activity has picked up markedly since the middle of last year, with air freight volumes growing at a robust pace,” said Andrew Herdman, AAPA director general.

In the same period, regional airlines carried a combined total of 155 million international passengers, an increase of 5.5% compared to January-June 2016. “Air passenger traffic volumes have been growing steadily, underpinned by elevated business and consumer confidence levels,” commented Herdman.

Looking ahead, the executive said, “International air passenger and cargo markets are well positioned to achieve further growth in the second half of the year, given signs of ongoing positive momentum in the global economy.”

Photo: Balou46