Asia Pacific airlines report a strong performance for 2007

Preliminary financial performance figures for 2007 released today by the Association of Asia Pacific Airlines (AAPA) shows that leading Asia-Pacific airlines had a successful year, with combined revenues reaching $103 billion. This is 11 per cent higher than the $93 billion reported in 2006.

AAPA is the trade association of 17 scheduled international airlines based in the Asia-Pacific region, addressing a wide range of issues affecting air travel. The membership of the organisation includes airlines such as Cathay Pacific Airways, Singapore Airlines and China Airlines.

According to the report, international passenger traffic volumes had also set a new record, growing by 4.2%, and passenger load factor was up at a record high of 77.1%.

The volume of international air cargo carried set a new record as well, though the growth rate was a more modest 2.7%.

Overall, AAPA member airlines reported aggregate profits of $5.2 billion, representing a 5% net margin, a marked improvement on the 3% net margin recorded in 2006. Carriers benefited from prudent capacity management and tight cost controls, despite the impact of high oil prices which resulted in a fuel bill of $27 billion, representing almost 30% of total airline costs.

Commenting on the results, Andrew Herdman, AAPA's director general said, ''Asia-Pacific airlines delivered some excellent results in 2007, with strong regional economies boosting demand for both business and leisure travel. Tight cost controls and prudent capacity management led to improved margins, despite the impact of persistently high oil prices.''

Herdman added: ''After a very successful 2007, Asia-Pacific airlines are well placed to meet both the opportunities and challenges which lie ahead. So far this year, we're still seeing steady growth in both passenger and cargo demand, but there is a growing sense of unease about the likely impact of slowing global economic growth coupled with cripplingly high oil prices. Airlines are therefore bracing themselves for some turbulence in the remainder of the year.''

AAPA's member airlines are Air New Zealand, All Nippon Airways, Asiana Airlines, Cathay Pacific Airways, China Airlines, Dragonair, EVA Airways, Garuda Indonesia, Japan Airlines, Korean Air, Malaysia Airlines, Philippine Airlines, Qantas Airways, Royal Brunei Airlines, Singapore Airlines, Thai Airways International and Vietnam Airlines.