The Association of Asia Pacific Airlines (AAPA) released its preliminary traffic figures for 2023, revealing a significant rebound in international passenger demand. This resurgence is primarily attributed to the lifting of pandemic-related travel restrictions across the region.
The year 2023 marked a remarkable turnaround for Asian airlines. They experienced a 161.0% surge in international passengers carried, totaling an impressive 278.5 million. In terms of revenue passenger kilometers (RPK), demand soared by 131.0%, indicating robust activity, particularly in short-haul markets. This growth in demand was complemented by a 106.2% expansion in available seat capacity as airlines ramped up flights within and beyond the region. The international passenger load factor, a key measure of airline efficiency, returned to pre-pandemic levels, averaging 80.9% in 2023, an 8.7 percentage point increase compared to 2022.
Air Cargo Markets
While passenger traffic flourished, air cargo markets faced challenges in 2023. Factors such as inflation, a strong US dollar, and governmental policies impacted trade and consumer spending. Despite these headwinds, the year’s end saw a resurgence in demand, driven by a boost in e-commerce shipments. December witnessed a 13.2% year-on-year growth in international air cargo demand, as measured in freight tonne kilometers (FTK), reducing the overall decline for 2023 to 2.8%. The offered freight capacity increased by 6.4%, resulting in a 5.8 percentage point drop in the average international freight load factor, which stood at 60.7% for the year.
Subhas Menon, AAPA director general, commented on these results, stating, “International passenger traffic carried by Asian airlines grew solidly by 161% in 2023. Passenger numbers averaged 72% of pre-pandemic 2019 levels, up significantly from 28% in 2022. While international air cargo demand declined by 2.8% for the full year, the last quarter of 2023 saw an 8.2% increase compared to the previous corresponding period. Overall, 2023 was a good year for the region’s carriers.
Passenger demand grew unabated, while air cargo markets ended the year on a high note.” He further highlighted the role of increased flight frequencies and city-pair connections in stimulating demand. However, airlines also faced capacity constraints and cost pressures due to volatile fuel prices and inflation.
Looking Forward to 2024
Menon is optimistic about 2024, expecting international passenger traffic for Asian airlines to return to pre-pandemic levels in the coming months. This positive outlook is bolstered by the resurgence of tourism and the continued expansion of the region’s economies.
Nonetheless, there remains some uncertainty due to potential geopolitical risks that could affect business and consumer sentiment. Amid these challenges, Menon assures that the region’s airlines remain vigilant and are investing in future growth.
The year 2023 proved to be a significant period of recovery and growth for Asian airlines, with a notable upswing in passenger numbers and a resilient performance in air cargo markets.
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