Preliminary January 2025 traffic figures released by the Association of Asia Pacific Airlines (AAPA) showed that international passenger markets enjoyed a robust start to the year, driven by a surge in leisure travel during the Lunar New Year festive period.
The region’s carriers achieved a solid 19.9% year-on-year growth for the month, transporting a combined total of 35.2 million international passengers. Demand as measured in revenue passenger kilometres (RPK) increased by 22.5%, markedly surpassing the 17.4% year-on-year expansion in available seat capacity. Consequently, the average international passenger load factor rose by 3.5 percentage points, to an elevated 83.7% in January.
Despite growing uncertainties in the broader trade environment, air cargo markets also sustained growth in the new year. Higher demand for consumer goods in anticipation of the festive season, resulted in a 4.7% year-on-year increase in international air cargo demand as measured in freight tonne kilometres (FTK), adding to the double-digit growth recorded in January 2024. Expansion in belly-hold space, drove a 10.9% year-on-year increase in offered freight capacity. Average international freight load factor dipped 3.3 percentage points to 55.2% for the month.
Commenting on the results, Mr. Subhas Menon, AAPA Director General, said, “The year began on a positive note for Asia Pacific carriers, with both international air passenger and cargo markets posting encouraging growth, underpinned by the timing of the Lunar New Year holidays.”
Mr. Menon added, “The relatively high load factors reflect strong demand but also ongoing capacity constraints, compounded by the grounding of aircraft due to engine issues and delays in aircraft deliveries. These challenges have contributed to an increase in expenditure on maintenance, aircraft leasing, and labour, while greater competition saw to lower yields and operating margins.”
Looking ahead, Mr. Menon concluded, “Growth prospects remain promising in the coming months, against a backdrop of steady expansion in global economic activity. However, ongoing geopolitical and trade tensions pose potential risks to both business sentiment and consumer demand in the months ahead. The region’s airlines are closely monitoring developments, whilst carefully managing costs to boost operating economics.”
