Asia-Pacific air cargo off 9% in Septerber

Members of the Association of Asia Pacific Airlines (AAPA) reported sharply lower passenger and cargo traffic volumes in September, as the industry felt the impact of the global economic slowdown. AAPA international passenger numbers in September totaled 11.0 million, a 6.6% decline compared to the same month last year.

Traffic measured in RPK terms fell by 5.1% on capacity growth of just 0.8%, resulting in a 4.5 percentage point deterioration in the average international passenger load factor, to 72.7%.

AAPA international air cargo traffic in September fared even worse, falling 9.0% in FTK terms. The average cargo load factor also fell by 1.6 percentage points to 66.4%, despite a 7% reduction in capacity.

Commenting on the results, Mr. Andrew Herdman, AAPA Director General said, “For the first nine months of the year, AAPA international passenger traffic, in RPK terms, grew by just 1.6%, while international air cargo traffic, in FTK terms, declined by 1.6% compared with the same period last year. We have seen a sharp deterioration in the operating environment in the past few months. Air cargo demand slumped in the summer and is still falling, even though this is normally the peak shipping season.”

He added, “Asia Pacific passenger traffic had been holding up relatively well, but the consequences of the global financial crisis are now being felt in the real economy, with
rapidly weakening consumer confidence affecting markets across the world. Lower oil prices are certainly welcome, but will not compensate for the expected revenue shortfall.”

Airlines will continue to take all possible steps to stay afloat, including reviewing capacity adjustments and making sure that fares remain competitive to attract incremental business. Overall, however, we are braced for a very rough ride over the next few months as the global economic slowdown begins to bite hard.”