Key Highlights

Preliminary January 2025 traffic figures released by the Association of Asia Pacific Airlines (AAPA) indicate that international passenger markets showed a robust start to the year, largely due to increased leisure travel during the Lunar New Year holidays.

The total international passengers transported reached 35.2 million, marking a 19.9% year-on-year growth. Demand, gauged by revenue passenger kilometres (RPK), surged by 22.5%, significantly exceeding the 17.4% year-on-year increase in available seat capacity. As a result, the average international passenger load factor rose by 3.5 percentage points, achieving 83.7% in January.

Despite uncertainties in the wider trade dynamics, the air cargo sector also saw growth. The surge in demand for consumer goods ahead of the festive season led to a 4.7% year-on-year rise in international air cargo demand, measured in freight tonne kilometres (FTK). This addition follows the significant growth seen in January 2024. An increase in belly-hold capacity corresponded with a 10.9% year-on-year hike in freight capacity, though the average freight load factor dipped by 3.3 percentage points to 55.2% for the month.

Subhas Menon, Director General of AAPA, remarked:

“The year began positively for Asia Pacific carriers, with international air passenger and cargo markets both experiencing growth, highlighted by the timing of the Lunar New Year holidays.” Translation: “El año comenzó positivamente para las aerolíneas de Asia-Pacífico, con los mercados internacionales de pasajeros y carga aérea experimentando un crecimiento, destacado por la coincidencia con las festividades del Año Nuevo Lunar.”

Menon added that the load factors remain high, reflecting solid demand but also persistent capacity constraints, exacerbated by aircraft groundings and delays in deliveries. These factors have been increasing maintenance, leasing, and labor expenses, while stiff competition has led to reduced yields and margins.

Looking ahead, Menon concluded:

“Growth prospects seem promising in the upcoming months against a backdrop of steady global economic expansion. Yet, geopolitical and trade tensions pose risks to both business sentiment and consumer demand.” Translation: “Las perspectivas de crecimiento parecen prometedoras en los próximos meses, en un contexto de expansión económica global constante. Sin embargo, las tensiones geopolíticas y comerciales suponen riesgos para tanto la confianza empresarial como la demanda de los consumidores.”