Asia Pacific airline traffic returned to year-on-year growth in September after five consecutive months of decline, according to preliminary figures released by the Association of Asia Pacific Airlines (AAPA) on October 29. Carriers in the region flew 30.4 million international passengers, a 0.7% increase, as longer-haul markets grew partly because passengers chose routings that avoided Middle East hubs. Capacity reductions held down traffic on some routes.
The AAPA said elevated jet fuel prices, airspace restrictions and weaker Asian currencies continue to put pressure on operating costs and profitability across the region’s airlines.
“The latest results highlight the resilience of demand amid a difficult operating environment. Passenger markets continued to adjust to changes in capacity and travel patterns, while stronger manufacturing activity and demand for AI-related goods supported cargo flows. Nevertheless, elevated jet fuel prices, airspace restrictions and weaker Asian currencies continue to put pressure on operating costs and profitability,” said Wong Hong, director general of the AAPA.
Capacity growth outpaced demand during the month. Revenue passenger kilometres (RPK) rose 5.9%, while available seat capacity expanded 6.8%.
As a result, the average international passenger load factor fell 0.6 percentage points to 80.2%.
The gap between RPK growth of 5.9% and passenger growth of 0.7% reflects the shift towards longer sectors in Asia Pacific airline traffic, with performance remaining uneven across individual markets.
“September saw passenger numbers increase slightly compared to a year earlier, with stronger growth in longer-haul travel, while air cargo demand gained momentum. Overall, during the first nine months of the year, Asia Pacific airlines carried 289.5 million international passengers, 1.9% more than in the same period last year. International air cargo demand rose by 5.6% over the same period,” said Wong.
International air cargo demand, measured in freight tonne kilometres (FTK), grew 6.4% year-on-year, ahead of a 4.9% increase in offered freight capacity. The average international freight load factor rose 0.8 percentage points to 60.3%.
The AAPA attributed cargo growth to stronger global manufacturing activity, increased purchases of raw materials and components, and sustained demand for AI-related goods.
On the outlook for Asia Pacific airline traffic, Wong said: “Year-end holiday travel should lend support to passenger demand, while continued investment in AI infrastructure and associated trade flows bode well for air cargo markets. However, higher travel and shipping costs could temper growth, while geopolitical tensions and changes in trade policies remain key uncertainties.”
