Profits across Asia Pacific remained at $6.9 billion in 2016 helped by strong air cargo markets negating yield pressures, while falling jet fuel prices reduced operating costs, the Association of Asia Pacific Airlines (AAPA) says.
Operating revenue dipped 0.3 per cent to $165.3 billion with a small fall in passenger revenue but cargo revenue fell 9.8 per cent to $16.2 billion as air cargo yields declined 11 per cent to 22.9 US cents per freight tonne kilometre.
AAPA director general, Andrew Herdman says the strong US dollar continues to have an impact, saying: “The strengthening of the US dollar against many Asian currencies affected revenue performance and increased the burden of dollar obligations for a number of carriers.”
He also says: “Continued growth in passenger demand and the pick- up in air cargo markets, with significantly higher load factors during the first quarter, give some cause for optimism for the remainder of this year.”
“However, the operating environment remains challenging, against a backdrop of stiff competition, higher oil prices and other cost pressures.”