APAC airlines’ earnings climb on higher passenger volumes, load factor

Asia-Pacific airlines achieved US$8.8 billion in net earnings in 2017, up 31.6 per cent from the previous year, underpinned by higher volumes and with load factors, according to preliminary figures released today by the Association of Asia Pacific Airlines (AAPA).

AAPA revealed that Asian airlines recorded 8.6 per cent increase in international passenger traffic, expressed in revenue passenger kilometre terms (RPK), supported by the widespread availability of affordable airfares and continued expansion in network connections.

Passenger revenue increased by six per cent to US$135.6 billion. Intense competition led to a marginal one per cent decline in passenger yields to 7.9 US cents per RPK, although the decline was less severe compared to previous years.

Fuel costs rose significantly, by 19.6 per cent to US$40.6 billion, as global jet fuel prices climbed 24.5 per cent to average US$65.40 per barrel, while the share of fuel expenditure as a percentage of total operating expenses rose by 2.2 percentage points to 24.6 per cent.

Non-fuel expenditure also increased, by 5.6 per cent to US$124.4 billion, in line with higher traffic volumes, AAPA figures show.

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