Preliminary financial performance figures released today by the Association of Asia Pacific Airlines (AAPA) revealed a strong rebound in the earnings of Asia Pacific airlines in 2023, following three consecutive years of losses. Combined net earnings totaled a solid 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 AAPA said that the lifting of the final remaining pandemic-induced travel restrictions facilitated the resurgence of travel demand in 2023, leading to a 130.7% increase in international passenger traffic as measured in revenue passenger kilometres (RPK). Conversely, it said that 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 totalling US$198.1 billion, a 54.8% jump compared to the US$128.0 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, the AAPA said that reflecting the steady increase in flights, passenger yields declined by 6.7% to 8.6 US cents per RPK. Meanwhile, aggregated cargo revenue fell markedly, by 43.3% to US$21.0 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.
The AAPA said that 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 20.0% 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.
Commenting on the financial results, Subhas Menon, AAPA Director General said, “In 2023, Asia Pacific airlines made a welcome turnaround following three consecutive years of steep losses during the COVID-19 pandemic years. The region’s carriers recorded a significant operating profit margin of 7.8%, compared to the -9.3% posted in 2022. Asian airlines benefitted from the vigorous recovery in passenger demand. While still relatively high compared to historical averages, the oil price declined which served to alleviate cost pressures stemming from persistent inflation and a robust US Dollar.”
Looking ahead, Mr. Menon said, “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.”
As global air traffic demand exceeds pre-pandemic levels in 2024, airlines are turning their attention to fleet expansion, according to…
In recent months, the Houthi rebels in Yemen, an Iranian proxy, managed to shoot down a number of U.S-made MQ-9…
The recent German decision to equip its official aircraft with systems against Man Portable Air defence systems (MANPADS) is part…
The Armed Forces of the Philippines (AFP) is calling for a comprehensive missile defence system to safeguard the nation’s territory…
Airbus has urged the Philippine Air Force (PAF) to consider acquiring the Airbus A330 Multi-Role Tanker Transport (MRTT) aircraft to…
The Philippine military has underscored the urgent need for additional vessels and platforms to secure the country's territorial waters, amid…
Mayman Aerospace has completed successful flight tests at a military base in the Southern California desert of its Razor test…
Aselsan, Türkiye’s leading defense company, signed a number of critical agreeements at Azerbaijan Defense Exhibition (ADEX) in Baku, including the…
In the bustling maritime sector of the Philippines, DM8 Composites stands out as a pioneer in constructing advanced patrol boats.…
South Korean armoured vehicle manufacturer, Kovico is participating for the first time at the ongoing show. Speaking to Daily News,…
India’s state-owned Defence Public Sector Undertakings (DPSU), the Defence Research & Development Organisation (DRDO) and private Indian defence firms, are…
Mitsubishi Electric Corporation will complete the delivery of air surveillance radars ordered by the Philippines, later this year. Speaking to…
ASELSAN, Türkiye’s leading defence company, was established in 1975 starting its journey with the production of domestic radios and in…
Indonesia's defence industry, represented by DefendID, is making strides at ADAS 2024 in Manila, continuing its mission to promote homegrown…
3e Elektro Optik Sistemler is making its debut at the Asia Defence and Security Exhibition (ADAS) 2024, showcasing its innovative…
The Philippine Fleet (PF) announced on Monday the delivery of two additional fast attack interdiction craft (FAIC), also known as…
The launch of the second Miguel Malvar-class frigate, designated as the future BRP Diego Silang, is set for December 2024,…
In a discussion with Dato’ Sri Mohd Nizam Bin Kasa, the Managing Director of MILDEF International Technologies, Malaysia, Yulian Ardiansyah…
In a rapidly evolving maritime landscape, Chess Dynamics, led by Managing Director David Tuddenham, stands out as a key player…
At ADAS 2024 event currently taking place in the Philippines from 25 to 27 September, Systems Engineering & Assessment (SEA)…
As the geopolitical landscape in Southeast Asia continues to evolve, the need for advanced military capabilities has never been more…
Turkiye and Azerbaijan have signed several agreements to further enhance the defence capabilities of both the countries. Minister of Defense…
The STM500 shallow water diesel electric attack submarine is attracting considerable interest, especially from countries such as Pakistan and Azerbaijan.…
Türkiye’s global land systems manufacturer Otokar is exhibiting its ambulance variant of Cobra II 4x4 tactical wheeled armoured vehicle, which…
Azerbaijan is showcasing its prowess in building unmanned vehicles. On display at the ADEX are the indigenously made Kalan and…
Azerbaijan has taken delivery of three JF-17C (Block-III) multirole fighter aircraft from Pakistan, setting rumours of the purchase at rest.…
By ARIE EGOZI Israeli defence officials that arrived to attend the 5th Anniversary Azerbaijan International Defence Exhibition (ADEX) received questions…
UAE’s Edge Group is continuously growing and transforming, based on the requirements of its customers, says Hamad Al Marar is…
Barzan Holdings, which is owned by the State of Qatar, is clear about its intention. “We aim to grow into…
Robit Technology’s Azat First Person View (FPV) kamikaze drone is catching the eyes of the guests at the ADEX2024. The…
Headquartered in Singapore with reporters spread across all major regions, GBP Aerospace & Defence is a leading media house that publishes three publications that serve the aerospace and defence sector - Asian Defence Technology, Asian Airlines & Aerospace and Daily News. Known industry-wide for quality journalism, GBP Aerospace & Defence is present at more international tradeshows and exhibitions than any other competing publication in the region.
For over three decades, our award-winning team of reporters has been producing top-notch content to help readers stay abreast of the latest developements in the field of commercial aviation, MRO, defence, and Space.
Copyright 2024. GBP. All Rights Reserved.
Home Defence & Security Space Commercial Aviation Maintence Repair & Overhaul Daily News Events About Us
2024 GBP all rights reserved.