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CX reports growth in April traffic

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HONG KONG, 23 Monday 2024: Holiday season travel and large-scale events were the drivers prompting a surge in leisure and business passenger traffic in April, according to Cathay Pacific’s latest traffic figures for April 2024, 

Cathay Pacific carried 1,741,585 passengers in April 2024, an increase of 26.1% compared with April 2023. The month’s revenue passenger kilometres (RPKs) increased 27.8% year-on-year. Passenger load factor decreased by 5.4 percentage points to 81.6%, while available seat kilometres (ASKs) increased by 36.2% year-on-year. In the first four months of 2024, the number of passengers carried increased by 47.3% to a total of 7,143,363, against a 50.9% increase in ASKs and a 42.3% increase in RPKs, as compared with the same period for 2023.

The airline carried 117,428 tonnes of cargo in April 2024, an increase of 7.4% compared with April 2023. The month’s cargo revenue tonne kilometres (RFTKs) decreased 0.4% year-on-year. The cargo load factor decreased by 4.2 percentage points to 59.5%, while available cargo tonne kilometres (AFTKs) increased by 6.6% year-on-year. In the first four months of 2024, the tonnage increased by 10.1% to a total of 473,808 tonnes, against a 12.9% increase in AFTKs and a 4.5% increase in RFTKs, as compared with the same period for 2023.

Travel

Chief Customer and Commercial Officer Lavinia Lau commented: “April was another good month for our travel business with multiple holiday periods and large-scale events stimulating business and leisure travel.
 “At the start of April, we saw an increase in both inbound and outbound traffic as people travelled to and from Hong Kong for Easter and the Cathay/HSBC Hong Kong Sevens.

“Shortly after that, festive periods in Indonesia and Thailand contributed to a rise in traffic from Southeast Asia to Hong Kong, the Chinese Mainland, Japan and other regional destinations. Then, towards the end of April, we saw strong pre-holiday demand from the Chinese Mainland and leisure traffic from Japan coinciding with the respective ‘Golden Week’ holidays in these two markets.

“In addition to leisure travel, April also saw healthy demand for business travel. The Canton Fair in Guangzhou was a notable driver, in particular for business travel from the United States. Our intermodal codeshare ferry services linking Hong Kong International Airport and Pazhou Ferry Terminal in Guangzhou provided convenient access to the exhibition centre and proved to be popular with overseas customers who transited via Hong Kong.”

Cargo

In terms of cargo, tonnage was 13% lower in April than in March. The decrease was expected given the strong quarter-end demand in March and the holidays that fell in the first half of April. However, compared with April last year, tonnage was 7% higher.  

Outlook

“This month, the Individual Visit Scheme will be expanded to include eight more cities on the Chinese mainland, enabling residents in these cities to visit Hong Kong in their individual capacity. This is a welcomed development that will attract more visitors to Hong Kong, strengthen Hong Kong’s tourism sector and contribute to its continued growth and development. We look forward to providing premium services for more customers from the Chinese Mainland. As a Group, we will be operating up to 210 return flights per week between Hong Kong and the Chinese Mainland this summer season,” Lau concluded. 

Over the coming months, Cathay Group will continue to add more destinations and flights to its network. These include Cathay Pacific’s Barcelona service, which will resume next month, and HK Express’s Sanya and Clark services in May and June, respectively. Regarding travel demand, students returning to Hong Kong for the summer will provide a boost in June and July, while the outlook for the summer peak remains promising.

MATTA offers government fuel for thought

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TTR WEEKLY
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KUALA LUMPUR, 23 May 2024: The Malaysian Association of Tour and Travel Agents (MATTA) urges the government to extend fuel subsidies to tourism vehicles, including all types of licensed tourism vehicles (not just buses) in the upcoming subsidy allocation in June 2024.

MATTA represents over 3,000 tour and travel companies in Malaysia. The tourism industry has been heavily impacted by the COVID-19 pandemic, with many tour operators struggling to stay afloat. Providing subsidies for tour buses would provide much-needed relief for these companies as domestic tourism starts to recover.

According to MATTA President Nigel Wong: “School and express busses currently receive fuel subsidies from the government. We hope the government will also consider extending this to tourism vehicle operators. The tourism industry desperately needs help to remain competitive, and fuel costs are a major expense for tour operators.”

With the recent increase in tourism footfall in Malaysia, “Bus Persiaran has become essential for facilitating tourists’ travel within the country. By extending the fuel subsidy to include Bus Persiaran, tour operators can reduce operational costs, offer more competitive pricing, and attract even more visitors to Malaysia as a travel destination,” said Wong.

We urge the Ministry of Transport (MOT) and the Ministry of Tourism, Arts and Culture (MOTAC) to consider integrating bus services into the subsidy framework.

MATTA remains committed to collaborating with relevant authorities to ensure that implementing new rules for diesel subsidies encompasses the vital aspect of bus transportation, thus contributing to a more efficient and inclusive public transport network for the nation.

Saudia orders more A320s

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TTR WEEKLY
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RIYADH, Saudi Arabia, 23 May 2024: Saudia Group, represented by Saudia, the national flag carrier of the Kingdom of Saudi Arabia, and flyadeal, the group’s low-cost carrier, has signed a firm order for an additional 105 A320neo Family aircraft. 

The order comprises 12 A320neo and 93 A321neo aircraft, increasing Saudia Group’s Airbus aircraft order backlog to 144 A320neo family aircraft.

The agreement was announced at the Future Aviation Forum in Riyadh in the presence of HE Saleh bin Nasser AIJasser, Minister of Transport and Logistic Services of the Kingdom of Saudi Arabia, HE Engr Ibrahim Al-Omar, Director General of Saudia Group and Benoît de Saint-Exupéry, Executive Vice President Sales of the Commercial Aircraft business.

Saudia will increase flights and seat capacity across its 100+ destinations on four continents, with plans for further expansion under the Saudi Vision 2030 master plan. The aim is to attract more visits, tourists, entrepreneurs, and pilgrims annually.

“The new additions of the A320neo family aircraft will play a vital role in contributing to the country’s ambitious Vision 2030 plan,” said 

Airbus  Executive Vice President Sales of the Commercial Aircraft business Benoît de Saint-Exupéry. “It will enable Saudia Group’s strategy to advance the Kingdom’s aviation capabilities while enabling both airlines to benefit from the A320neo Family’s exceptional efficiency, superior economics, the highest level of passenger comfort as well as lower fuel-burn and emissions.”

Saudi Arabia’s ambitious Vision 2030 plan, which targets more than 150 million tourists by 2030, is set to receive a significant boost with this order. The A320neo Family aircraft from Airbus will play a pivotal role in strengthening the Kingdom’s ambition of becoming one of the top global tourism destinations, offering unparalleled range, performance, and fuel efficiency. 

The A321neo, the largest member of Airbus’ A320neo Family, not only offers unparalleled range and performance but also brings significant environmental benefits. By incorporating new generation engines and Sharklets, the A321neo brings a 50% noise reduction and at least 20% fuel savings and CO2 reduction compared to previous generation single-aisle aircraft. This commitment to sustainability is further demonstrated by the fact that the entire A320 Family is already able to operate with up to 50% Sustainable Aviation Fuel (SAF), and Airbus aims for all its aircraft to be capable of operating with up to 100% SAF by 2030.

(SOURCE: Airbus)

MOVE flags lowest fares for members

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TTR WEEKLY
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KUALA LUMPUR, 23 May 2024: AirAsia MOVE, the Online Travel Agency of Capital A, released its lowest exclusive fares for AirAsia flights on its one-stop-shop platform. 

As the official booking platform for airlines within the AirAsia Group, travellers will be able to capture the best value fares on the AirAsia MOVE app for all domestic and ASEAN AirAsia flights (flight codes: AK, D7, FD, QZ, Z2, KT) across Malaysia, Thailand, Indonesia, the Philippines, Singapore, Vietnam, and Cambodia starting from as low as MYR39 all-in one-way. 

(Third and fourth from left) Paul Carroll, Group Chief Commercial Officer of AirAsia and  Dabraj Sing, Chief Business Officer, AirAsia MOVE, officiating AirAsia MOVE’s lowest AirAsia fares campaign.

Key features 

More ancillary options such as additional luggage, inflight meals, travel protection, and more, which can be booked directly on the app with up to 30% savings.
Ability to check and monitor AirAsia flight status within the app.
Conveniently manage flight bookings & check-in for all AirAsia flights.
Earn AirAsia points to travel and redeem flights and hotels.

AirAsia MOVE CEO Nadia Omer said: “At AirAsia MOVE, our vision is to be ASEAN’s favourite travel companion that creates inclusive and delightful journeys, and as Asia’s Leading OTA*, we are proud to be the exclusive travel platform to offer the lowest base fares for all AirAsia group of airlines’ flights, enabling more people to access affordable travel conveniently. This is an expansion of how our biggest airline partner’s wide connectivity has benefited many across the region to fulfil their dreams to travel, complemented by key features of our AirAsia MOVE app to enhance each traveller’s journey. Download the AirAsia MOVE app today, and check out the best deals across all of AirAsia group of airlines’ wide flight network, especially throughout the promo period from now until 2 June 2024.” 

Turbulence trashes SQ flight from London

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TTR WEEKLY
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SINGAPORE, 22 May 2024: Singapore Airlines flight SQ321 from London to Singapore was forced to make a medical emergency landing at Bangkok’s Suvarnabhumi Airport on Tuesday following a sudden extreme turbulence incident over the Irrawaddy basin Myanmar.

In a press statement, the airline said the plane was flying at 37,000 feet when it encountered “sudden extreme turbulence 10 hours into the flight between London Heathrow and Singapore.

The interior of Singapore Airlines flight SQ321 was trashed by sudden extreme turbulence over Myanmar. SQ321 made a medical emergency landing at Bangkok’s Suvarnabhumi International Airport on 21 May. (Photo credit: REUTERS/Stringer).

Flightradar24’s flight tracking data indicates the aircraft encountered a “suspected turbulence event” that recorded at one point a negative vertical rate of 1,500 (fPM) while flying over the southern tip of the Irrawaddy delta in Myanmar. The plane landed at Bangkok’s  Suvarnabhumi Airport at 1600 Tuesday. Earlier reports of a 6,000-foot drop in four minutes were subsequently corrected by Flightradar24 statement on Facebook on Wednesday.

A 73-year-old British citizen, Geoff Kitchen, died of a suspected heart attack, and 58 people were injured and hospitalised in three Bangkok hospitals, with at least two in ICUs. The airline reported 211 passengers and 18 crew members were on board the Boeing 777-300ER.

Singapore’s Prime Minister Lawrence Wong sent his condolences to the family members and loved ones of the man who was killed in the incident. In a Facebook post, the PM said they were “all saddened and shocked by what happened. We are working closely with Thai authorities and doing everything we can to support the passengers and crew.”

SIA provided a breakdown of the nationalities of the passengers on board SQ321:

6 from Australia, 2 from Canada, 1 from Germany, 3 from India, 2 from Indonesia, 1 from Iceland, 4 from Ireland, 1 from Israel, 16 from Malaysia, 2 from Myanmar, 23 from New Zealand, 5 from the Philippines, 41 from Singapore, 1 from South Korea, 2 from Spain, 47 from the United Kingdom, and 4 from the United States.

“Singapore’s Transport Safety Investigation Bureau (TSIB), an arm of the Transport Ministry, is investigating what happened on SQ321,” Channel News Asia reported.

(Source: CNA and SIA)

Emirates returns to Nigeria 1 October

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TTR WEEKLY
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Sea of cloud

DUBAI UAE, 21 May 2024: Emirates will resume services to Nigeria from 1 October 2024, operating a daily service between Lagos and Dubai and offering customers more choice and connectivity from Nigeria’s largest city to and through Dubai.

The service will be operated using a Boeing 777-300ER. EK783 will depart Dubai at 0945 and arrive in Lagos at 1520; the return flight, EK784, will leave Lagos at 1730 and arrive in Dubai at 0510 the next day. Tickets can be booked now on emirates.com.

Emirates’ Deputy President and Chief Commercial Officer Adnan Kazim said: “We are excited to resume our services to Nigeria. The Lagos-Dubai service has traditionally been popular with customers in Nigeria. We hope to reconnect leisure and business travellers to Dubai and our network of over 140 destinations. We thank the Nigerian government for their partnership and support in re-establishing this route, and we look forward to welcoming passengers back onboard.”

With the resumption of operations to Nigeria, Emirates operates to 19 gateways in Africa with 157 flights per week from Dubai, with further reach to an additional 130 regional points in Africa through its codeshare and interline partnerships with South African Airways, Airlink, Royal Air Maroc, Tunis Air, among others.

As a major African economic hub, Nigeria and the UAE have built strong bilateral trade relations over the years, headlined by Lagos as the nation’s commercial centre. With the resumption of daily passenger flights, the airline’s cargo arm, Emirates SkyCargo, will further bolster the trade relationship by offering more than 300 tonnes of belly-hold cargo capacity in and out of Lagos every week.

Emirates SkyCargo will support Nigerian businesses by exporting their goods via its state-of-the-art hub in Dubai into key markets such as the UAE, Malaysia, Hong Kong, and Bahrain, among others, with key anticipated commodities such as Kola Nuts, food and beverages, and urgent courier material. Emirates SkyCargo will also import vital goods such as pharmaceuticals, electronics, and general cargo from key markets such as the UAE, India and Hong Kong. 

The Emirates Boeing 777-300ER serving Lagos will operate with eight first class suites, 42 business class seats, and 304 economy class seats. Offering the best experience in the sky, passengers can dine on regionally inspired multi-course menus developed by a team of award-winning chefs complemented by a wide selection of premium beverages. Customers can tune in to over 6,500 channels of global entertainment, including 23 Nigerian movies, in addition to series and other content on ice, Emirates’ award-winning inflight entertainment system.

For flight information and to make bookings visit www.emirates.com

Centara partners with KTC for a greener future

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TTR WEEKLY
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BANGKOK  21 May 2024: Centara Hotels & Resorts, Thailand’s leading hotel operator, has reaffirmed its commitment to creating a cleaner, greener planet by forming an inspiring new partnership with KTC Credit Card to drive a series of critical sustainability projects at Centara Grand Beach Resort Phuket, the popular five-star beachfront destination.

These two proactive companies will align their CSR programmes and advance environmental awareness among their eco-conscious customers. As part of this collaboration, KTC and Centara will jointly host a ‘fam trip’ to Centara Grand Beach Resort Phuket in May this year, showcasing and advancing the company’s 360-degree activities.

Under its global sustainability strategy, “For a Better Tomorrow”, Centara has adopted a group-wide approach to environmental preservation and social responsibility. It became the first Asian hospitality group to incorporate the Global Sustainable Tourism Council’s (GSTC) criteria into its internal sustainability standard, called “Centara EarthCare” based on four pillars: Environment, Social, Cultural, and Management. It also tracks, measures, benchmarks and enhances its performance using the “Greenview Portal”, a third-party GSTC-recognised system.

In the past year, 24 of Centara’s properties have been approved for GSTC certification, and the company is working towards its long-term goal of achieving full certification by 2025. In the long term, Centara will strive to reduce its waste and carbon emissions by 20% by the end of the decade. In line with this target, a recent MoU will lead to integrating “smart energy”, including solar power, at the group’s properties.

Nestled on a pristine stretch of Karon Beach and surrounded by lush greenery, Centara Grand Beach Resort Phuket is a five-star oasis of tranquillity for all guests, from couples to families. In keeping with Centara’s global strategy, this idyllic resort has implemented a wide range of environmental initiatives, such as a wastewater treatment plant to irrigate the gardens, a biogas machine to create organic fuel and fertiliser, and solar cells which are now generating more than 572 kilowatts of green energy to power the property.

Daily beach cleaning activities remove potentially harmful litter and plastic from the shore, and turtle signage has been posted on the beach to educate visitors about leatherback turtles – the world’s largest species of sea turtle – which lay their eggs in the sand.

“At Centara, we are fully committed to being a force for good and making a difference in every destination we operate. As part of our journey to inspire positive change, we are delighted to team up with KTC, our like-minded partner, who will help us advance the cause of sustainability in Phuket, one of the world’s most idyllic destinations. We look forward to working together to create a brighter tomorrow,” said Centara Hotels & Resorts Chief Executive Officer Thirayuth Chirathivat.

To learn more about Centara’s commitment to sustainability, please visit www.centarahotelsresorts.com/sustainability.

(SOURCE: Centara Hotels & Resorts)

Tourism Malaysia strengthens tourism ties

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TTR WEEKLY
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PUTRAJAYA, Malaysia, 21 May 2024: Tourism Malaysia recently concluded a pivotal sales mission to Oman and Qatar, a crucial step in our ongoing efforts to strengthen tourism ties and showcase the latest travel offerings to the West Asian market.

For this mission, Tourism Malaysia assembled a diverse delegation of 23 Malaysian tourism and hospitality providers. This group included 12 travel agencies, eight hotel groups, and a representative from the state government, each playing a vital role in promoting our country’s tourism. 

The delegation showcased Malaysia’s latest tourism products and hosted business-to-business (B2B) sessions as well as networking dinners in Muscat and Doha, enabling productive partnerships and knowledge exchange between Malaysian and local travel trade partners. 

West Asian travellers have consistently ranked in the top five international spending groups in Malaysia, boasting a high per capita expenditure and longer average stays. In 2023, Malaysia welcomed 18,078 and 2,464 tourists from Oman and Qatar, respectively. 

“While these numbers reflect a positive trajectory, the mission aimed to re-capture pre-pandemic arrivals of 23,911 and 4,089 logged in 2019. This target was further supported by the availability of convenient direct flights to Kuala Lumpur offered by Qatar Airways, Oman Air and Salam Air,” Tourism Malaysia concluded.

SQ goes for a direct London Gatwick flight

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TTR WEEKLY
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Photo: hotel.com

SINGAPORE, 21 May 2024: Singapore Airlines will launch services to London Gatwick on 21 June as part of its timetable for the Northern Summer 2024 operating season (31 March 2024 to 26 October 2024).

Earlier, the airline introduced a direct service from Singapore to Brussels effective 1 April. The four weekly direct flights operate on the Singapore – Brussels route on Monday, Wednesday, Friday and Sunday using an A350-900 with 259 seats.

Flight SQ304 departs Singapore at 2355 and arrives in Brussels at 0720 plus a day.
Flight SQ303 departs Brussels at 1210 and arrives in Singapore at 0655

The new direct service from Singapore to London Gatwick will operate five times weekly: Monday, Tuesday, Friday, Saturday, and Sunday as of 21 June. The route will be served by an A350-900 with 259 seats. The starting roundtrip fare on the route is about USD1,349.

Flight SQ312 will depart Singapore at 2355 and arrive at London Gatwick (LGW) at 0655 plus a day.
Flight SQ309 will depart London Gatwick at 1015 and arrive in Singapore at 0620.

During the Northern Summer 2024 operating season (31 March 2024 to 26 October 2024), the airline serves Barcelona, Beijing, Darwin, Hong Kong SAR, Houston, Kuala Lumpur, Melbourne, Milan, Perth, Rome, Seattle, Shanghai, Taipei-Tokyo (Narita), and Yangon Myanmar.

Scoot began Embraer E190-E2 operations on 7 May 2024 with flights to Krabi. The aircraft will operate to destinations such as Hat Yai, Miri, and Kuantan, as well as two new points — Koh Samui (May 2024) and Sibu (June 2024). 

Operating the aircraft on thinner routes to non-metro destinations in the Asia-Pacific allows the Group to unlock significant growth opportunities in the region.

As of 31 March 2024, the Group’s passenger network covered 118 destinations in 35 countries and territories. SIA served 73 destinations, while Scoot served 67. The cargo network comprised 123 destinations in 37 countries and territories. The Group’s operating fleet consisted of 200 aircraft with an average age of seven years and three months. SIA had 142 passenger aircraft and seven freighters, while Scoot had 51 passenger aircraft. In April 2024, the Group added one Airbus A350-900 and two Embraer E190-E2 aircraft. As of 1 May 2024, the Group had 89 aircraft on order.

SIA profit takes off to record high

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TTR WEEKLY
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SINGAPORE 21 May 2024: Singapore Airlines declared the highest full-year operating and net profits in the Group’s history for the financial year ending 31 March 2024, claiming positive demand for air travel  spurred robust passenger increases in revenue and load factors

Record profits

The Group’s operating profit reached a record SGD2,728 million, up SGD36 million or 1.3% from the previous year. Net profit improved by SGD518 million (+24.0%) to SGD2,675 million.

The positive annual results confirmed last week were achieved against a backlog of geopolitical tensions, macroeconomic uncertainties, inflationary pressures, and supply chain constraints that have posed serious global challenges for the aviation industry.

In its financial statement, the SIA Group said its robust foundations and long-term strategic initiatives position it strongly to capture future growth opportunities.

The Group proposed a final dividend of 38 cents per share, resulting in a total payout of 48 cents per share for FY2023/24, or a dividend yield of 7.5%.

Passager traffic grows 26.6%

In its financial report for the full year ending 31 March 2024, the airline noted that demand for air travel remained buoyant throughout the financial year, boosted by a rebound in North Asia as China, Hong Kong SAR, Japan, and Taiwan fully reopened their borders. SIA and Scoot carried 36.4 million passengers, up 37.6% year-on-year. 

Passenger traffic grew 26.6%, outpacing the capacity expansion of 22.9%. As a result, the Group passenger load factor (PLF) improved 2.6 percentage points to a record 88.0%. SIA and Scoot registered record PLFs of 87.1% and 91.2% respectively.

Revenue rose 7%

Group revenue rose SGD1,238 million (+7.0% year-on-year) to a record SGD19,013 million. Passenger flown revenue rose by SGD2,319 million (+17.3%) to SGD15,685 million, despite a 7.6% decline in passenger yields. Cargo flown revenue fell SGD1,485 million (-41.2%) to SGD2,119 million. While cargo loads increased by 1.7% due to the strong demand from the e-commerce segment, yields were 42.2% lower year-on-year – albeit 29.8% above pre-pandemic levels.

Expenses increased 8% 

Group expenditure increased SGD1,202 million (+8.0%) to SGD16,285 million. Non-fuel expenditure rose by SGD1,336 million (+13.5%) and was partially offset by an SGD132 million decrease (-2.5%) in net fuel cost. The increase in non-fuel expenditure was lower than the 16.0% increase in overall passenger and cargo capacity. On the other hand, net fuel cost fell despite higher volumes uplifted (+SGD918 million) and a lower fuel hedging gain (+SGD358 million), mainly due to an 18.5% decrease in fuel prices (-SGD1,281 million).

Record profit

As a result, the Group’s operating profit reached a record SGD2,728 million, up SGD36 million or 1.3% from the previous year. The Group’s net profit improved by SGD518 million (+24.0%) to SGD2,675 million. This was mainly due to the better operating performance (+SGD36 million), a net interest income versus net finance charges a year before (+SGD215 million), lower tax expense (+SGD132 million), and a share of profits versus a share of losses of associated companies from the previous year (+SGD104 million).

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