AviationOutlook for 2015 remains positive

Asia Pacific airlines see healthy growth in 2014

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Prospects looks bright for air travel in Asia Pacific
Prospects looks bright for air travel in Asia Pacific
Prospects looks bright for air travel in Asia Pacific
Prospects looks bright for air travel in Asia Pacific

Growth in Asia’s regional economies, and robust trade activities supported by stronger US markets, helped spur business and leisure travel demand. 

The Association of Asia Pacific Airlines (AAPA) said in 2014, airlines showed healthy growth in international air passenger demand.

A total of 256.1 million international passengers flew on the region's carriers in 2014, representing an annual increase of 4.8% from the previous year. 

Growth in Asia’s regional economies, and robust trade activities supported by stronger US markets, helped spur business and leisure travel demand. 

However, there was a 1.0 percentage point decline in the average international passenger load factor to 77.0% for the year due to a 6.0% expansion in available seat capacity. This was despite a combined 4.7% increase in international passenger traffic. 

Commenting on the results, Andrew Herdman, AAPA Director General said, "Despite challenges, Asia Pacific airlines enjoyed a year of good growth in international passenger traffic in 2014. Passenger demand was healthy, underpinned by increasing numbers of middle income earners and further expansion in airline networks, which have all helped boost air travel within the region and beyond. 

However, passenger yields remained under pressure throughout the year, reflecting the intensely competitive market environment and some signs of overcapacity.”

Herdman added, "The dramatic fall in oil prices since the end of the year has been welcomed by many airlines, although the resultant benefit in terms of improved profitability will vary depending on individual airline hedging policies and their degree of exposure to external debt, given the weaker Asian currencies."

Looking ahead, Herdman concluded, "Overall, the outlook for the coming year remains broadly positive, with sustained growth in the global economy continuing to drive air travel demand, whilst lower oil prices will also help to keep air travel affordable. 

“However, airlines will need to closely monitor market movements, and align future capacity increases with the actual increase in demand, whilst seeking further operating efficiencies to restore margins to more sustainable levels."

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