Asia-Pacific revenues grow by 50 per cent

AIRLINES based in the Asia-Pacific region saw cargo revenues lift by 52 per cent to US$22 billion in 2010.

International cargo traffic, expressed in freight tonne kilometres, surged by 24 per cent for the year.

The Association of Asia Pacific Airlines (AAPA) said the strong results were underlined by a bounce-back in airfreight demand, and an increase in operating efficiencies including record high load factors.

The share of fuel expenditure as a percentage of total operating costs for all carriers in the region rose to 32 per cent in 2010, from 29 per cent the previous year, as oil prices climbed 29 per cent to an average of $80 per barrel in 2010.

“Buoyed by a firm recovery in premium business travel and a very strong rebound in demand for airfreight, Asia Pacific carriers saw a welcome return to profitability in 2010 after two years of heavy losses,” Andrew Herdman, AAPA director general, said.

Herdman expects the medium- and long-term prospects for Asia-Pacific aviation to remain positive, but sharp increase in oil prices this year will dampen any immediate significant gains.