The Association of Asia Pacific Airlines (AAPA) released preliminary financial statistics for 2024 on July 11th. The report indicates that regional carriers achieved a combined net profit of $7.3 billion supported by a growth in passenger traffic and a recovery in cargo volumes. This success occurred despite a challenging operational environment marked by supply chain issues and rising costs.

Overview of the Year

In 2024, there was a notable increase in both business and leisure travel, resulting in a 19.9% increase in system-wide passenger demand measured in revenue passenger kilometers (RPK). Meanwhile, international air cargo demand surged by 13.9%, resuming growth after two years of decline.

Asia Pacific airlines reported a 7.7% rise in operating revenue, totaling $213.9 billion compared to $198.6 billion in 2023. Increases were observed in passenger revenue (+8.8% to $170.4 billion) and cargo revenue (+10.3% to $23.2 billion).

Despite these gains, operational expenses increased by 8.4% to $199.8 billion, primarily due to a 10.1% rise in non-fuel costs. Supply chain challenges, including delays in aircraft deliveries and engine issues, pushed maintenance costs upward. Fuel expenses were also affected but rose only 4.8% to $60.8 billion thanks to a decline in jet fuel prices.

Resilience Amid Challenges

Subhas Menon, AAPA’s Director-General, remarked on the economic resilience of Asia Pacific airlines despite cost pressures, noting the adaptability of airlines in sustaining growth amidst difficulties. “Air passenger demand is expected to remain relatively resilient amidst continued growth in the region’s economies. Airlines are refining their strategies while investing in fleet modernization and enhancing service offerings to maintain a high-quality travel experience.”

Menon also pointed out potential future challenges, citing geopolitical tensions and market volatility as ongoing concerns for the industry.