ATW Daily News

Asia/Pacific airlines expect $4.8 billion 2009 loss

Friday November 20, 2009

Assn. of Asia Pacific Airlines' Assembly of Presidents started on a sober note yesterday with DG Andrew Herdman telling media that the group of 17 Asia/Pacific carriers is expected to lose $4.8 billion this year owing mainly to the global economic downturn.

"The loss will top the $4.3 billion suffered in 2008," Herdman said, adding that airlines remain uncertain of whether signs of a "fragile recovery in passenger and cargo volumes will prove to be sustainable." For the year to Oct. 31, AAPA member carriers' international passenger numbers were down 8.2% year-over-year while cargo traffic slumped 16.5%, particularly troubling in a region where many airlines generate 30% or more of their revenue from airfreight.

But signs of improvement are apparent: AAPA carriers' passengers carried reached 11.1 million in October, down just 3% year-over-year, while cargo traffic was 2.5% lower, the smallest drop of any month this year.

by Geoffrey Thomas

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