The cargo revenue of Asia-Pacific airlines declined last year by a significant 11.7% to US$18.5 billion as a result of the general slowdown in global trade conditions, according to figures released today by the Association of Asia Pacific Airlines (AAPA).
This even as international air cargo traffic, expressed in freight tonne kilometers, grew by 2.1% in the year, said AAPA.
However, due to strong passenger demand, the region’s carriers posted a sizable profit this year, recording $6.9 billion in combined net earnings, an upswing from net losses of $1.2 billion in 2014. The strong results were underpinned by sustained growth in passenger markets, lower fuel prices, and operating efficiencies including a record high passenger load factor of 78.4%, said the trade organization.
Overall, the region’s carriers achieved aggregated operating revenues of $166.9 billion for the calendar year, 5.6% less than the $176.8 billion in 2014. Passenger revenue fell by 5.4% to $128.4 billion, due to a decline in yields despite the growth in traffic demand.
During the year, Asia Pacific airlines registered an 8.3% increase in international passenger traffic, measured in revenue passenger kilometer terms.
Combined operating expenses fell by 12.6% to $153.0 billion, driven by a 31.4% decline in fuel expenditure to US$41.2 billion.
Andrew Herdman, AAPA director general, said, “Asia Pacific carriers saw a welcome return to profitability in 2015, after suffering aggregate losses in the previous year. The region’s carriers registered a significant operating margin of 8.3%, compared with the 1.0% margin achieved in 2014. Overall, Asian airlines benefitted from strong passenger demand and the significant fall in oil prices, although the financial impact on individual carriers would also depend on currency volatility and variations in individual fuel hedging policies, amongst other factors.”
Looking ahead, Herdman said air cargo markets are expected to remain weak as a result of the slowdown in global trade.
Photo: Dave Dugdale
