KUALA LUMPUR, 2 November 2023: Preliminary September 2023 traffic figures released Monday by the Association of Asia Pacific Airlines (AAPA) showed solid expansion in international passenger markets, led by a steady rebound in tourist arrivals across the region.
Further revival in demand on routes connecting China provided additional momentum to the travel recovery.
Overall, Asia Pacific airlines recorded a 111.0% year-on-year increase in international passengers carried to a combined total of 23.7 million in September. This brings demand to 79% of the corresponding month in 2019, a marked improvement compared to 52.9% in January. Demand, as measured in revenue passenger kilometres (RPK), increased by 90.9% year-on-year, while available seat capacity expanded by 86.1%, leading to a 2.0 percentage point increase in the average international passenger load factor to 79.7% for the month.
Meanwhile, following 18 consecutive months of decline since March 2022, the region’s carriers recorded an upswing in international air cargo demand in September, with a 3.2% year-on-year growth as measured in freight tonne kilometres (FTK). While the increase was partly attributable to comparisons with depressed levels recorded last year, the start of the high-demand season leading to the year-end festive period also contributed to growth. The international freight load factor fell by 3.3 percentage points to an average of 60.6% for the month after accounting for an 8.8% year-on-year expansion in offered freight capacity.
Commenting on the results, AAPA director general Subhas Menon said: “During the first nine months of the year, Asian airlines in aggregate carried 194 million international passengers, 212% more than the same period last year, reflecting a very strong post-pandemic recovery in demand. Air cargo demand turned positive for the first time in 2023 in September, which helped to moderate the decline for the year to date to 6.4%. It is a welcome relief to have both passenger and cargo demand on a positive footing. However, the fall in export orders seen across major economies still signals challenging market conditions.”
Looking ahead
As for the next few months and into 2024, Menon forecasts: “The outlook for the region’s travel markets is broadly positive going into the final quarter of this year, with continued expansion in air passenger demand supported by resilient growth in the Asian economies. Airlines are facing increasing headwinds, marked by sharply higher fuel costs in recent months. Nevertheless, the region’s carriers are buoyed by the strong recovery of air travel and are looking forward to the growth continuing into 2024.”
