Positive Outlook as Asia Pacific Airlines Return to Profitability

Dark/Light Mode
(18/06/24)
 Preliminary financial performance figures from
the Association of Asia Pacific Airlines (AAPA) show a strong
rebound in the earnings of Asia Pacific airlines in 2023,
following three consecutive years of losses.

Combined net earnings totaled US$8.8
billion for the calendar year, on the back of healthy travel
demand in both leisure and business sectors regionally and
worldwide.

The lifting of the final remaining
pandemic-induced travel restrictions facilitated the resurgence of
travel demand in 2023, leading to an 130.7% increase in
international passenger traffic as measured in revenue passenger kilometres (RPK).

International air cargo demand,
measured in freight tonne kilometres (FTK), saw a 2.8% annual
decline, driven by inflationary pressures, a robust US Dollar and
consequent downturn in the demand for goods.

For the year, Asia Pacific airlines achieved
operating revenues totaling US$198.1 billion, a 54.8% jump
compared to the US$128 billion recorded in 2022.

Combined
passenger revenue more than doubled, by 105.4% to US$151.5
billion, driven by the sturdy growth in passenger demand.

However,
reflecting the steady increase in flights, passenger yields
declined by 6.7% to 8.6 US cents per RPK, whilst aggregated
cargo revenue fell markedly, by 43.3% to US$21 billion in 2023,
driven by weakness in trade activity and easing freight rates, as
reflected in the 41.7% drop in cargo yields to 33.6 US cents per
FTK. Despite the decline, average cargo yields remained above
pre-pandemic levels.

Meanwhile, operating expenses rose by 30.9% to a
combined total of US$182.6 billion in 2023, in tandem with the
ramp-up in flight frequencies and restoration of networks.

Fuel
expenditure rose by 41.5% to US$57.7 billion, in part mitigated by
a 20% fall in global jet fuel prices to an average of US$113.4
per barrel. The share of fuel expenditure as a percentage of total
operating costs increased by 2.4 percentage points to 31.6%.

Non-fuel costs increased by 26.5% to US$124.9 billion,
as a result of higher expenditure on staff as well as landing fees
and enroute charges.

“In 2023, Asia Pacific airlines
made a welcome turnaround following three consecutive years of
steep losses during the COVID19 pandemic years. The region’s
carriers recorded a significant operating profit margin of 7.8%,
compared to the -9.3% posted in 2022,” said Subhas
Menon, AAPA Director General. “The outlook for Asian airlines is
generally positive, as demand for air travel globally continues to
be strong, complemented by resurgent growth in international air
cargo markets. The region’s carriers continue to face numerous
challenges, including delayed deployment of additional capacity
due to supply chain constraints and persistent cost pressures. Notwithstanding, Asia Pacific airlines remain
nimble and proactive, seeking to open new routes and meet customer
demand. Improving cost efficiency and profitability, as well as
keeping the focus on safety standards, and sustainability targets,
are ongoing priorities.”

Latest
exclusive video interviews: Miss
International Queen 2024 (MIQ 2024) – Interview with Alisa
Phanthusak, MD, Tiffany’s Show Pattaya, Thailand; 16
HD Video Interviews from Routes Europe 2024 in Aarhus, Denmark;
9 HD Video Interviews from Routes Asia 2024 in Langkawi, Malaysia;

Standard to Open Residences in Hua Hin and Phuket, Thailand; Video
Interview with Amar Lalvani, Executive Chairman;
9 Exclusive Video Interviews
from ASEAN Tourism Forum
2024
in Vientiane, Laos;


8 NTO Press Conferences from ASEAN Tourism Forum 2024 in
Vientiane, Laos;

13 HD Video Interviews from World Travel
Market 2023 in London, England;

5 HD Video Interviews from APG World Connect 2023 in Monaco, France;
and

15 HD Video Interviews from Routes World 2023 in Istanbul, Türkiye.



Headlines:

Jetstar Asia Resumes Flights Between Singapore and Clark, Philippines Sabre Hospitality to Showcase SynXis Concierge.AI at HITEC 2024 St. Regis Resort Opens in Al Mouj, Oman Percy Muncherji and Ron Cusiter Join Thailand’s Centara Hotels and Resorts Four Seasons Yachts Unveils Details of More Voyages Planned for 2026 Sabre to Upgrade Sun Siyam Resorts’ Distribution and Retailing Strategy Positive Outlook as Asia Pacific Airlines Return to Profitability SITA Reports Continued Reduction in Mishandled Baggage by Air Transport Industry Scandinavian Airlines Launches Daily Flights Between Copenhagen and Atlanta, USA Belgium Orders 17 Airbus H145M Helicopters AirAsia Resumes Direct Flights Between Kuala Lumpur and Pattaya, Thailand Vietnam Airlines Launches Flights Between Saigon and Manila, Philippines Korean Air Selects Air Incheon as Preferred Bidder for Asiana’s Freighter Business Marriott to Significantly Expand Portfolio of Hotels in France Avianca Resumes Eleven International Routes IndiGo to Launch Flights from Durgapur to Bhubaneswar, Bagdogra and Guwahati in India Vietnam Airlines Continues Digital Transformation with Amadeus’ Altea PSS IHG Signs First Kimpton Resort in Hawaii Cathay Pacific to Launch Passenger Flights Between Hong Kong and Riyadh, Saudi Arabia Laurence Neumann Joins Gran Melia Nha Trang as DOSM Miss International Queen 2024 – Video Interview with MD of Tiffany’s Show Pattaya Frasers Hospitality Expands Sabre Partnership with SynXis Retailing IHG Signs Holiday Inn Resort in Kufri, India Charles Szar Joins AeroTransCargo as President Saudi Arabia’s Travel and Tourism Sector Continues to Break Records Sabre Market Intelligence Reveals Key Insights into China’s Outbound Travel Trends Geoff Donaghy, CEO of ICC Sydney, Resigns Emirates to Launch Dubai – Seychelles – Madagascar Flights Pan Pacific Returns to Jakarta with Tallest Luxury Hotel in the City Saudia and Virgin Atlantic Sign Codeshare Agreement SalamAir to Launch Flights Between Muscat and Delhi, India Radisson to Expand Red Hotel Brand to Bangkok, Thailand Plaza Premium Expands Number of Personalised Services at Hong Kong Airport IndiGo to Increase Flights from Delhi to Almaty, Tashkent and Tbilisi Vietnam Airlines Joins IATA CO2 Connect Dusit Signs Dual-Branded Hotel and Residences in Phuket, Thailand Jetstar to Launch Flights Between Brisbane and Bangkok, Thailand Hong Kong Airlines to Launch Flights to Da Nang, Vietnam Singapore University Working with SITA to Upgrade Air Travel Experience Germany Orders 38 Airbus H225 Helicopters for Bundespolizei AI to Reduce Food Waste at All Mandarin Oriental Hotels Globally ITA Airways to Upgrade Network Infrastructure with SITA Connect Go Accor to Implement Amadeus’ Cloud-Based Central Reservation System Gonzalo Aguilar to Join Minor Hotels as CEO – Europe & Americas Cathay Pacific and Singapore Airlines to Collaborate on Sustainable Initiatives Thai AirAsia to Launch Flights Between Bangkok and Tiruchirappalli, India Minor Takes Over Management of Two Hotels in Sri Lanka CapitaLand Completes Acquisition of Standard at Columbia Student Accommodation in USA Singapore Airlines Renews Slot and Schedule Manager Agreement with Sabre Austrian Airlines to Increase Flights to Bangkok, Thailand Riyadh Air and Singapore Airlines to Explore Interline Connectivity and More Mandarin Oriental Opens Second Hotel in London, England Mexicana Orders 20 Embraer E2 Aircraft Lufthansa Launches Flights Between Munich and Seattle, USA Airbus to Showcase Wingman Concept at ILA Berlin Marriott Resort Opens in Lampung, Indonesia IndiGo and Japan Airlines Agree to Codeshare Ritz-Carlton Reserve Opens on Ummahat Island in Saudi Arabia Norse Atlantic Airways Launches Flights Between Athens and New York, USA British Airways Opens Refurbished Lounge at Lagos Airport in Nigeria Hong Kong Airport Reports Robust Increases in Passenger and Cargo Traffic Marriott Opens Luxury Collection Resort in Labuan Bajo, Indonesia Dusit Expands Senior Development Team with Two Executive Appointments Hong Kong Airlines to Launch Flights to Taichung, Taiwan Aviation: RPK Up 11%, ASK Up 9.6 and PLF at 82.4% in April 2024 Furama to Rebrand Hotel in Sydney, Australia Asia Pacific Airlines Carried 28 Million International Passengers in April IHG Signs Two Crowne Plaza Hotels in Egypt IATA Reports Latest Air Cargo Data Air Canada Expands Ottawa Network Marriott Signs Tribute Portfolio Hotels in Chongqing, Jiande and Xiaoshan, China Keishi Spa Swan Valley Relocates to Novotel Perth Murray Street in Australia Korean Air’s Afforestation Project in Baganuur, Mongolia Celebrates 20th Anniversary Etihad Airways Becomes Main Sponsor of Girona FC Rolls-Royce Adds Airline Support Baltic to Network of Authorised Service Centers IndiGo to Launch Nagpur – Chhatrapati Sambhajinagar – Goa Flights Radisson Signs Blu Resort in Ho Tram, Vietnam Treamprom Klinhom Joins Moxy Bangkok Ratchaprasong as MarCom Manager The Slate Phuket Launches Promotion for Thai Residents Airbus to Establish Tech Hub in Japan Sabre Embraces Increasing Power of AI to Launch SabreMosaic Thailand International Boat Show to Take Place at Phuket Yacht Haven in 2025 Aeroflot Opens Ticket Sales on Flights Between Krasnoyarsk and Sanya, China Norwegian Cruise Line Unveils Details of 24 Port-Intensive Cruises Across Asia British Airways to Launch Seasonal Flights to Tromsø, Norway SITA Expands Portfolio of Airport Solutions with Materna IPS Acquisition United Airlines Takes Wrexham AFC’s Recent Success to New Heights Peter Tichy Joins Radisson Blu Plaza Bangkok as General Manager SMFL LCI Orders 14 Airbus Helicopters Apollo Extends Charter Contract with Scandinavian Airlines (SAS) Garuda Indonesia and Singapore Airlines Sign FFP and Revenue Sharing Agreements Mandarin Oriental Signs Fifth Luxury Hotel in Italy Saudia Signs Firm Order for 105 Airbus Aircraft IHG Signs Three Resorts in Turks & Caicos Plaza Premium Appoints Dr. Syafrina Sharif as Global Head of ESG & Sustainability TFE Hotels Launches New Loyalty Program The First Collection at Jumeirah Village Circle Joins Marriott’s Tribute Portfolio Emirates to Double Number of Flights to Saigon, Vietnam Korean Air Partners AWS for AI-Powered Contact Center GOLIAT Project to Explore Use of Liquid Hydrogen in Aviation Singapore Airlines to Establish a Foundation Plaza Premium to Open City Terminal Lounge in Osaka, Japan ATR Appoints Andrea Coccetti as CFO and SVP Finance Pegasus Airlines to Launch Flights Between Ankara and Dublin, Ireland Hawaiian Airlines Launches Flights Between Honolulu and Salt Lake City IHG Signs Crowne Plaza Resort in Nepalgunj, Nepal Minor Hotels Appoints Puneet Dhawan as Head of Asia Pegasus Airlines Launches Flights Between Istanbul and Bratislava, Slovakia Amelia Appoints APG as Online GSA in Belgium and Offline GSA in Luxembourg Queen Elizabeth 2 Hotel in Dubai Appoints Nidal Shbat as Director of Sales Cross Launches New Hotel Brand Air Astana Warns Nomad Club FFP Members About Upcoming Upgrade WTM London 2024 Opens Call for Papers IndiGo to Launch Direct Flights Between Deoghar and Bengaluru Travel and Tourism Industry Deal Activity Down 13.5% Thai AirAsia Reports Q1 2024 Results Greg Gubiani Joins World’s Best Airport Hotel as GM Passenger Security Charge at Hong Kong Airport to Increase in Phases Hotel Management Japan to Upgrade Distribution with SynXis and Channel Connect Trials on Use of Renewable Diesel for Airside Vehicles at Singapore Changi Airport IHG to Expand Hotel Indigo and Vignette Collection Brands to Vietnam Pegasus Airlines to Launch Flights Between Istanbul and Edinburgh, Scotland Philippines and Singapore Agree to Significantly Improve Air Connectivity Lokesh Kumar Joins Minor Hotels as Vice President of Development – Middle East Norse Atlantic Reports Strong Passenger Numbers for April 2024 Hong Kong to Host Routes World 2025 Emirates to Refurbish 71 More A380 and B777 Aircraft Yotel Partners Frasers Hospitality for First Hotel in Japan British Airways Holidays Reveals Results from 2024 Travel Trends Report Hangzhou ZhongWei Goethe Hotel Joins WorldHotels Four Seasons Signs New-Build Luxury Hotel in Madinah, Saudi Arabia Etihad Airways Offers Free Hotel Stays in Abu Dhabi Stopover Promotion Shell Sells Energy and Chemicals Park in Singapore SWISS Launches Flights Between Zurich and Seoul, South Korea Marriott Opens First AC Hotel in Southwest China High-Speed Fun in Denmark! HD Video Interview with Aarhus Sea Rangers Lodz Airport (LCJ) Central Poland – Interview with Robert Makowski, Commercial Director (CCO) Greenland Airports – Interview with Jens R. Lauridsen, CEO Glasgow (GLA), Southampton (SOU) and Aberdeen Airports (ABZ) – Interview with Christopher Tibbett, Aviation Director Visit Aarhus – Interview with Pia Lange Christensen, CEO Aarhus Airport (AAR) in Denmark – Interview with Lotta Sandsgaard, CEO Visit Estonia – Interview with Kristina Kästik, B2B Team Lead, at Routes Europe 2024 Airsiders – Interview with Antonio Pascale, Commercial Director, at Routes Europe 2024 PDC Airport Solutions – Interview with Flemming Glyager at Routes Europe 2024 in Aarhus, Denmark Hannover Airport (HAJ) – Interview with Prof. Dr. Martin Roll, CEO Princess Juliana Airport (SXM) – Interview with Michiel Parent, Commercial Director London Southend Airport (SEN) – Interview with Marc Watkins, RDM Tallinn Airport (TLL) in Estonia – Interview with Eero Pärgmäe Board Member and CCO Isle of Man Airport (IOM) – Interview with Gary Cobb, Airport Director Visit Isle of Man – Interview with Deborah Heather, CEO, at Routes Europe 2024 OAG – Interview with Chelsea Waller at Routes Europe 2024 in Aarhus, Denmark Nine Exclusive HD Video Interviews from Routes Asia 2024 in Langkawi, Malaysia 9 Exclusive Video Interviews with VIPs at ASEAN Tourism Forum 2024 in Vientiane, Laos 8 NTO Press Conferences from the ASEAN Tourism Forum 2024 in Vientiane, Laos 13 Exclusive HD Video Interviews from World Travel Market 2023 in London, England 5 Exclusive HD Video Interviews from APG World Connect 2023 in Monaco, France 15 Exclusive HD Video Interviews from Routes World 2023 in Istanbul, Türkiye Electric Airport Taxis at Almaty Airport in Kazakhstan – Video Interview with Co-Founder Pictures from Miss International Queen 2023 Transgender Beauty Pageant in Pattaya, Thailand Exclusive Video Interviews with 17 Miss International Queen 2023 Contestants Living With One Eye – Six Years On by Steven Howard HD Videos and Interviews Podcasts from HD Video Interviews RSS Feed – Travel Industry News Ticker – Travel Industry News Travel Industry News Archives Travel Trade Shows High-Res Picture Galleries Travel News Asia – Latest Travel Industry News