‹ 2008 JATA-WTF Set for September •
The economic slowdown is affecting travel demand according to the latest air traffic data from the Association of Asia Pacific Airlines (AAPA). For July 2008, AAPA member airlines carried 12.6 million international passengers, 0.6% less than the same period last year, although traffic measured in RPK (revenue passenger kilometers) increased slightly by 0.8%. Overall capacity, measured in ASK (available seat kilometers) continued to outdo demand rising 2.5% year-on-year.
The outlook for the rest of the year remains bleak as most of the world’s major economies struggle to avoid recession, says AAPA Director General Andrew Herdman. Airlines are hurriedly cutting back non-performing routes and reducing capacity corresponding to the anticipated decline in demand. To survive the present crisis, carriers are also working closely with airports and other key service providers to lessen unnecessary costs throughout their business, adds Herdman.
Unlike other AAPA members, Cathay Pacific and Singapore are continuing to forge ahead despite the current situation to capitalize on traffic in their respective hubs, Hong Kong and Singapore. Cutbacks are mainly experienced by AAPA members in North Asia and the South Pacific, which bear much of the capacity restraint.
Source: Travel Daily News at www.traveldailynews.com
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