Association Of Asia Pacific Airlines Reports Strong Growth In May 2024 Air Passenger And Cargo Demand

Thursday, June 27, 2024

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In May 2024, the Association of Asia Pacific Airlines reported significant growth in international air passenger demand and cargo markets, driven by global economic activity.

The Association of Asia Pacific Airlines (AAPA) unveiled May 2024 traffic figures today, indicating robust growth in both international air passenger demand and air cargo markets, aligned with increased global economic activity.

In May, airlines in the region collectively transported 27.9 million international passengers, marking a 23.9% rise compared to the same month last year. Passenger traffic reached 89.4% of 2019 levels. Demand, measured in revenue passenger kilometres (RPK), rose by 27.4% year-on-year, showcasing the strength of long-haul travel markets. With available seat capacity expanding by 26.4%, the average international passenger load factor slightly increased by 0.6 percentage points to 79.0% for the month.

Propelled by strong trade activity both regionally and globally, Asian airlines experienced a significant 17.9% year-on-year growth in international air cargo demand, measured in freight tonne kilometres (FTK). The average international freight load factor improved by 1.4 percentage points to 61.4%, following a 15.1% increase in offered freight capacity.

Commenting on the results, Mr. Subhas Menon, AAPA Director General said, “In the first five months of the year, Asia Pacific airlines carried a total of 144 million international passengers, reflecting a 44.8% increase compared to the previous corresponding period. During the same period, international air cargo demand grew by 16.0%.”

Mr. Menon added, “The current pick-up in global economic activity, supported by improvements to business confidence levels and increased consumer spending, has boosted demand for both international travel and air cargo. Asia Pacific airlines, being major players in the air cargo markets, have also benefitted from disruptions to ocean freight services.”  

Looking ahead, Mr. Menon said, “Encouraging trends in passenger and cargo traffic bode well for Asian airlines this year, following strong traffic performance for the year 2023. However, profit margins remain under pressure, with operating costs impacted by the strong US Dollar and jet fuel prices averaging above the US$100 per barrel mark during the first five months of the year. Overall, Asian airlines remain committed to maintaining stringent cost controls across their operations, alongside a proactive pursuit of growth opportunities.”