KUALA LUMPUR, 1 February 2024: the Association of Asia Pacific Airlines’ preliminary traffic figures for 2023 released on Tuesday showed robust growth in international passenger demand, underpinned by a strong appetite for travel following the removal of the region’s remaining pandemic-related travel restrictions.
For the year, the region’s airlines recorded a 161.0% increase in the number of international passengers carried to a combined total of 278.5 million. In revenue passenger kilometres (RPK) terms, demand rose by 131.0%, reflecting strength in short-haul markets. The increase in demand was supported by a 106.2% expansion in available seat capacity for the year as airlines restored flights within and across regions. The international passenger load factor returned to pre-pandemic levels with an average of 80.9% in 2023, an 8.7 percentage point increase compared to 2022.
Meanwhile, air cargo markets entered 2023, weighed by multiple headwinds, including inflation, a strong US dollar, government policy dampening trade activity, and household spending power. Nevertheless, the year’s final months saw demand grow strongly, led by increased e-commerce shipments. In December, international air cargo demand as measured in freight tonne kilometres (FTK) recorded a 13.2% year-on-year growth, further reducing the decline recorded for 2023 to 2.8%. Offered freight capacity rose by 6.4%, resulting in a 5.8 percentage point decline in the average international freight load factor to 60.7% for the year.
Commenting on the results, AAPA director-general Subhas Menon said: “International passenger traffic carried by Asian airlines grew solidly by 161% in 2023. Passenger numbers averaged 72% of pre-pandemic 2019 levels, up significantly from 28% in 2022.
“Whilst 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 previous corresponding period.”
Overall, 2023 was a good year for the region’s carriers due to a gradual restoration of flights and city-pair connections for the year, which provided more options for travellers, further stimulating demand.
“However, as operations were progressively restored, airlines faced capacity constraints and increased cost pressures driven by volatile fuel prices, a strong US Dollar and inflationary impacts on operations,” Menon explained.
“2024 promises to be another good year for Asian airlines. International passenger traffic is poised to return to pre-pandemic levels in the coming months, buoyed by the return of tourism and resilient expansion of the region’s economies.”
He concluded that “uncertainties remain, including the potential erosion of business and consumer sentiment amid rising geopolitical risks. Against this background, the region’s airlines remain vigilant to market influences while investing for future growth.”
