Air travel demand in APAC remain suppressed: AAPA

 

Ongoing tight border restrictions continue to suppress international air passenger demand in the Asia-Pacific region in June, according to preliminary traffic figures released by the Association of Asia Pacific Airlines (AAPA).

Across the Asia-Pacific region, many countries recorded a surge in Covid-19 transmissions caused by new variants, with limited vaccine supplies hampering vaccination progress.

The region’s airlines carried only 1.4 million international passengers in June, just 4.4 per cent of the 32 million carried in the corresponding month in 2019.

With available seat capacity at 12.9 per cent of pre-pandemic levels, the average international passenger load factor of 31 per cent recorded in June was a 51 percentage point drop from that of the corresponding month in 2019. The decline underscored the significant challenges faced by airlines in the passenger segment, which normally accounts for a significant portion of total airline revenue.

Subhas Menon, AAPA director general, said: “The already dire situation has recently been compounded by new Covid-19 infections across the region due to the Delta variant, with ongoing border restrictions holding back any meaningful restart in international travel markets. Air cargo traffic growth, supported by strong demand for both intermediate and consumer goods from the major advanced economies, remains the saving grace.

“Many Asian economies are facing renewed challenges in bringing the pandemic under control and in progressing vaccination rollouts. Prospects for an early recovery for Asian airlines are dim unless cohesive action is taken by governments to accelerate vaccination rollouts and reopen borders safely based on ICAO and WHO guidelines.”

-TTG Asia.