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Asian airlines hit rock bottom

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KUALA LUMPUR, 28 August 2020: Preliminary July 2020 traffic figures released Thursday by the Association of Asia Pacific Airlines (AAPA) show international passenger demand almost completely suppressed since April 2020, due to ongoing border closures and other “onerous forms of travel restrictions”.

Asia Pacific airlines carried only 844,000 international passengers in July 2020, representing levels of less than 3% of the 33.4 million passengers carried in July 2019. Offered seat capacity was at 8.3% of the levels operated last year, resulting in a low 33.2% average international passenger load factor for the month.

Meanwhile, following a modest recovery in the global manufacturing sector, Asian airlines saw relatively stable demand for international air cargo shipments, although traffic measured in freight tonne-kilometre terms (FTK) was still 16% below the levels seen in the same month last year. The average international freight load factor was 10.4 percentage points higher at 69.7% for the month, reflecting the sharp reduction in belly-hold cargo capacity following the grounding of most international passenger service operations.

Commenting on the results, AAPA director general Subhas Menon said: “International border closures affecting more than 50% of destinations worldwide, and other forms of onerous travel restrictions, continue to cripple international travel. Prospects for a more substantive recovery of the aviation industry are stalled and as a result, severely impacting the wider travel and tourism sector.”

He called on governments to act urgently to review existing restrictions and prepare for the safe reopening of borders, implementing appropriate risk management protocols in line with ICAO CART recommendations.

The AAPA chief said it was noteworthy that several countries and industry bodies are evaluating various Covid-19 testing regimes that could facilitate international air travel without the imposition of blanket quarantine requirements.

“AAPA remains committed to exploring further pragmatic initiatives with governments and other relevant stakeholders, to progressively reopen international air travel corridors in a safe and secure manner,” said Menon.

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