Throughout the year, the airlines in the region experienced a remarkable 161.0% surge in the number of international passengers, reaching a combined total of 278.5 million. In terms of revenue passenger kilometers (RPK), the demand increased by 131.0%, highlighting the strength in short-haul markets. The rise in demand was supported by a 106.2% expansion in available seat capacity.
GLOThe initial traffic data for 2023 from the Association of Asia Pacific Airlines (AAPA), released on Tuesday, indicates significant growth in international passenger demand. This growth is attributed to a strong desire for travel following the removal of the remaining pandemic-related travel restrictions in the region.
Throughout the year, the airlines in the region experienced a remarkable 161.0% surge in the number of international passengers, reaching a combined total of 278.5 million. In terms of revenue passenger kilometers (RPK), the demand increased by 131.0%, highlighting the strength in short-haul markets. The rise in demand was supported by a 106.2% expansion in available seat capacity as airlines resumed flights within and across regions. The international passenger load factor also returned to pre-pandemic levels, averaging 80.9% in 2023, marking an 8.7 percentage point increase compared to 2022.
In contrast, the air cargo markets faced challenges in 2023 due to various factors such as inflation, a strong US dollar, government policies affecting trade, and household spending power. Despite these challenges, the final months of the year witnessed strong growth in air cargo demand, particularly driven by increased e-commerce shipments. In December, international air cargo demand, measured in freight tonne kilometers (FTK), showed a 13.2% year-on-year growth, reducing the overall decline for 2023 to 2.8%. However, the offered freight capacity increased by 6.4%, leading to a 5.8 percentage point decline in the average international freight load factor to 60.7% for the year.
AAPA Director-General Subhas Menon commented on the results, noting that international passenger traffic for Asian airlines grew significantly by 161% in 2023. Passenger numbers reached an average of 72% of pre-pandemic 2019 levels, a substantial increase from the 28% recorded in 2022. While international air cargo demand declined by 2.8% for the full year, the last quarter of 2023 saw an 8.2% increase compared to the same period in the previous year.
Overall, 2023 was a positive year for the region’s carriers due to the gradual restoration of flights and city-pair connections, providing more options for travelers and stimulating demand. However, Menon pointed out that as operations were progressively restored, airlines faced capacity constraints and increased cost pressures due to volatile fuel prices, a strong US dollar, and inflationary impacts on operations.
Looking ahead to 2024, Menon expressed optimism, stating that international passenger traffic is expected to return to pre-pandemic levels in the coming months. This positive outlook is fueled by the return of tourism and the resilient expansion of the region’s economies. However, Menon acknowledged existing uncertainties, including the potential erosion of business and consumer sentiment amid rising geopolitical risks. Despite these uncertainties, the region’s airlines remain vigilant to market influences while investing for future growth.
Source: AAPA
