Airlines in Asia Pacific returned to profitability in 2015, despite cargo revenue falling due to weakening global demand, the Association of Asia Pacific Airlines (AAPA) says.
Airlines in the region made a profit of $6.9 billion, with strong passenger demand, lower fuel prices and improvements in operating efficiencies. The profit is in contrast to 2014, when the region’s airlines made a loss of $1.2 billion. Despite returning to profit, cargo revenue was down 11.7 per cent to $18.5 billion.
AAPA director general, Andrew Herdman says: “Air cargo markets remain weak as a result of the slowdown in global trade. Nevertheless, taking a positive view of the future, Asia Pacific airlines are continuously reviewing their fleet and network development plans in line with evolving market trends, and introducing new customer service initiatives, whilst continuing to focus on disciplined cost management efforts.”
Revenue for the region fell by 5.6 per cent to $166.9 billion, but the fall in fuel prices means that operating expenses were down 12.6 per cent to $153 billion. Fuel expenditure was down 31.4 per cent to $41.2 billion.