The Asia-Pacific airline industry is experiencing a resurgence in passenger numbers, nearing pre-pandemic levels. In July 2024, the region’s airlines carried a staggering 31.9 million international passengers, representing a 22.6% increase compared to the same month in 2023. This figure is just 2% shy of the pre-pandemic levels recorded in July 2019.
The Association of Asia Pacific Airlines (AAPA) attributes this remarkable rebound to effective regional travel promotions and more lenient visa policies, which have fueled demand throughout the peak summer season. For the first seven months of 2024, Asia-Pacific airlines transported 208.0 million international passengers, representing 95.1% of the 218.7 million passengers seen during the same period in 2019.
Despite this impressive growth, AAPA Director General Subhas Menon highlighted the ongoing challenges related to supply chain disruptions. Menon pointed out that numerous airlines in the region are still grappling with delays in aircraft deliveries, parts shortages, and persisting engine issues. These supply chain bottlenecks are acting as a brake on the full recovery of the industry.
The recovery has been further boosted by strong performance from Chinese airlines like China Eastern and China Southern. These carriers are witnessing robust growth in passenger demand, with both outbound and inbound traffic exceeding pre-COVID levels.
Asian airlines have been proactive in adjusting capacity. They have added flights to high-demand routes while reallocating aircraft from less popular ones. In July, the international passenger load factor reached 82.6%, slightly surpassing the 82.4% recorded in July 2019. Year-over-year, demand (RPK) rose by 20.5%, and capacity (ASK) increased by 21.2%, signifying a well-balanced recovery.
While the Asia-Pacific airline industry is making significant strides towards a full recovery, the persistent supply chain challenges pose a significant obstacle. The sector needs to navigate these challenges effectively to fully capitalize on the resurgence in passenger demand and return to pre-pandemic levels.
