Surge in Air Passenger and Cargo Markets in APAC Region

Backed by robust consumer and business demand, the Asia Pacific airlines have recovered to pre-Pandemic levels as they registered a surge in both international air passenger and cargo markets, the Association of Asia Pacific Airlines (AAPA) said.

According to the preliminary traffic figures for November 2024, which were released by AAPA, the region’s airlines collectively carried 31 million international passengers in November, a 19.8% increase compared to the previous corresponding period.

Underpinned by strength on long haul travel markets, demand in revenue passenger kilometres (RPK) grew by 21.7% y-o-y and the average international passenger load factor rose by a solid 2.7 percentage points to 82% for the month after accounting for a 17.6% expansion in available seat capacity.

In the air cargo segment, growth in shipment volumes was driven by sustained e-commerce demand and the front-loading of export orders ahead of the anticipated US tariff hikes.

International air cargo demand, measured in freight tonne kilometres (FTK), increased by 10.5% y-o-y, slightly outpacing a 10% rise in offered freight capacity. Consequently, the average international freight load factor edged up by 0.2 percentage points to 62.3% for the month.

In August last year, the region’s airlines recorded a 21.7% increase in the number of passengers carried to a combined total of 32.3 million. Traffic edged closer to pre-pandemic levels, averaging 96.1% of 2019 volumes.

The APAA also said that after three consecutive years of losses, there was also a strong rebound in the earnings of these regional airlines in 2023 as the combined net earnings totalled $8.8 billion for the calendar year, on the back of healthy travel demand in both leisure and business sectors regionally and worldwide.

Leading Global Growth

AAPA Director General Subhas Menon said that the region’s airlines have led growth in international travel markets this year, benefitting from strong demand for both business and leisure travel. Demand has now fully recovered to pre-pandemic levels.

Overall, for the first eleven months of the year, the region’s carriers recorded a 31% increase in the number of international passengers carried to a combined total of 334 million, he said.

According to him, driven by increased demand going into the year-end holiday season, air cargo markets saw healthy growth in November, contributing to a strong 14% y-o-y increase for the first 11 months of the year. Persistent operational challenges in maritime shipping and the anticipated US tariff hikes further bolstered demand.

Looking ahead, he said: “Based on current trends, 2024 is anticipated to conclude on a positive note for both passenger and cargo markets. However, uncertainty about the global economy and supply chain disruptions pose challenges to the region’s carriers. Asia Pacific airlines remain well-poised to navigate these challenges whilst maintaining the highest safety and service standards.”