Fri, 19 May 2017

Asia Pacific Airlines Profitability Sustained in 2016

Preliminary financial performance figures from the Association of Asia Pacific Airlines (AAPA) reveal that Asia Pacific airlines registered US$6.9 billion in aggregate net earnings for the full year 2016.

 Solid growth in passenger demand, coupled with renewed strength in air cargo markets, helped negate yield pressures resulting from stiff competition, while the fall in jet fuel prices had an ameliorating effect on airline operating costs.

During the year 2016, Asia Pacific airlines registered a 6.4% increase in international passenger traffic, measured in revenue passenger kilometre (RPK) terms, supported by continued expansion in network connections. International air cargo traffic, expressed in freight tonne kilometres (FTK), grew by 1.3%, on the back of a pick-up in export activity in the second half of the year.

Scoot Boeing 787-8 Dreamliner at Don Mueang Airport in Bangkok, Thailand (May 2017)

Collectively, Asia Pacific airlines recorded operating revenue totaling US$165.3 billion in 2016, a slight 0.3% decline compared to the US$165.8 billion achieved in the previous year. Passenger revenue edged 0.2% lower to US$126.4 billion, as lower airfares saw a 5.5% decline in average passenger yields to 7.9 US cents per RPK. Despite volume growth, cargo revenue fell significantly, by 9.8% to US$16.2 billion, as air cargo yields declined by 11.0% to 22.9 US cents per FTK.

Combined operating expenses totaled US$151.8 billion, unchanged from 2015. Reflecting the significant 17.7% drop in global jet fuel prices to an average of US$52.6 per barrel, fuel expenditure fell by 16.8% to US$33.7 billion. As a result, the share of fuel expenditure as a percentage of total operating costs declined by 4.5 percentage points to 22.2%. On the other hand, non-fuel expenditure rose by 6.1% to US$118.0 billion.

Commenting on the 2016 financial results, Mr. Andrew Herdman, AAPA Director General, said, "Asia Pacific carriers achieved another year of respectable earnings in 2016, with an average 8.2% operating margin and net profits of around US$6 per passenger, reflecting the still very competitive market environment. 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."

"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. Nevertheless, Asia Pacific airlines are focused on enhancing business performance and investing effectively in new technologies and aircraft, with the aim of strengthening resilience and further improving long-term profitability," added Mr. Herdman.

See also: Tony Fernandes (AirAsia) and Gary Chapman (Emirates) Talk Aviation @ WTTC Global Summit 2017 - HD Video and HD Videos from AAPA's 60th Assembly of Presidents in Manila, Philippines.

See other recent news regarding: AAPA, Airlines, Aviation.

Subscribe to our Latest Travel News Daily Email Free of Charge by simply entering your email address to the right. You can also stay updated with our RSS Feed Free Travel News RSS Feed and even add the travel news to your website. Have questions? Please read our travel news FAQ.
Exclusive HD video interview with Mr. Fumihiro Sakakibara, General Manager - Japan, Macao Government Tourism Office. Aviation industry update from the Group CEO of AirAsia, Mr. Tony Fernandes, and Gary Chapman, Emirates' President Group Services and dnata. Exclusive HD video interview with Mr. John R. Rolfs, General Manager of The Ritz-Carlton, Tokyo and Vice President Japan & Korea. In this interview, filmed in a luxurious suite at The Ritz-Carlton, Tokyo on Sunday, 24 September 2017, we ask Mr. Rolfs to tell us more about the property.
Macao Tourism Update Aviation: AirAsia and Emirates The Ritz-Carlton, Tokyo
What exactly is going to happen to The Dusit Thani Bangkok hotel, when will it close, what about the staff, when will the new Dusit Thani Bangkok open and what will it be like? In this exclusive HD video interview with Ms. Sukanya Janchoo, General Manager of The Dusit Thani Bangkok, Steven Howard of asks Khun Sukanya about the hotel, its markets, RevPAR and these major changes. Travelodge Hotels Asia’s Brands and Expansion Plans - Exclusive HD Video Interview with Stephen Burt, Chairman. Exclusive HD video interview with Alejandro Bernabe, Group Director of Avani Hotels and Resorts. We talk about Avani Hotels' future plans and what exciting new developments are in the pipeline. You will also learn that Avani is about to announce a new sub brand, is currently building its first resort with private pool villas and what the group's position is on new technology.
Dusit Thani Bangkok Travelodge Hotels Asia Avani Hotels & Resorts
Jonathan Wigley, CEO of Travelodge Thailand, outlines expansion plans in HD Video Interview. Exclusive HD video interview with Myanmar's Minister of Tourism and Hotels, H.E. U Ohn Maung, about the status of tourism in the beautiful and mystical country of Myanmar (formerly known as Burma). Birth of a Luxury Thai Hotel Brand - HD Video Interview with Christopher E. Stafford, Chief Operating Officer of the newly formed 137 Pillars Hotels & Resorts.
CEO of Travelodge Thailand Myanmar Tourism Update Birth of Luxury Thai Hotel Brand
This HD video tour of Thai AirAsia X's brand new 337-seat Airbus A330-300 aircraft was filmed at Don Mueang Airport in Bangkok, Thailand on 14 May 2014  Exclusive HD video interview with Jaime J. Bautista, President & Chief Operating Officer (COO) of Philippine Airlines (PAL) HD video of the interior and exterior of a Thai Vietjet Airbus A320-200.
Thai AirAsia X A330-300 PAL President & COO Thai Vietjet A320-200
Inside Qatar Airways Boeing 787-8 Dreamliner - HD Video It takes 800 workers between 65 and 80 days to assemble, install, test, paint, furnish and deliver an Emirates Airbus A380. Showers, Bars, Lounge - The Emirates Airbus A380 Has Them All - HD Video Tour Thai Airways International Takes Delivery of Brand New Boeing 777-300ER
Qatar Airways B787 Emirates A380 Thai Airways B777-300ER
Latest Travel News
Copyright © 1997-2017