Preliminary financial performance figures released by the Association of Asia Pacific Airlines (AAPA) show that Asia Pacific carriers achieved $7.3bn in combined net profits during 2024, supported by strong growth in passenger traffic and a marked recovery in cargo volumes.
Figures show growth in both business and leisure travel, within the region and globally, resulting in a 19.9% increase in systemwide passenger demand. Meanwhile, a surge in e-commerce activity and disruptions to maritime shipping contributed to a solid 13.9% increase in international air cargo demand.
Airlines in the region recorded a 7.7% increase in operating revenue last year, reaching a combined total of $213.9bn, compared to $198.6bn the year prior. Aggregated passenger revenue rose by 8.8% to $170.4bn, while cargo revenue climbed by 10.3% to $23.2bn.
Combined operating expenses rose by 8.4% to $199.8bn for the year, due mainly to a 10.1% increase in non-fuel expenditure to $138.9bn.
AAPA stated that persistent supply chain challenges, including shortages of spare parts, aircraft delivery delays and aircraft groundings due to engine issues, drove up maintenance and leasing costs. Inflationary pressures also contributed to higher staff expenditure and airport charges.
“2024 was a year of remarkable resilience for Asia Pacific airlines, as carriers confronted multiple challenges while achieving strong growth in both passenger and cargo demand, along with record passenger load factors," said Subhas Menon, AAPA director general. “However, airlines were not immune to cost pressures. The marked increase in operating expenses, particularly non-fuel costs, underscored the impact of supply chain constraints.”
Menon also cited considerable headwinds for the region's airlines moving forward, including elevated operating costs and ongoing supply chain disruptions.
Geopolitical tensions may also lead to renewed volatility in oil and currency markets while air cargo markets may soften further, as uncertainties over trade negotiations dampen demand for air shipments.