The Business Times

Asia air travel rebound buoyed by 2023 forward bookings

Published Thu, Nov 10, 2022 · 04:35 PM

A REBOUND in Asian airline travel is “doing well” going into 2023 due to forward bookings, Subhas Menon, director-general of the Association of Asia-Pacific Airlines (AAPA), said Thursday (Nov 10).

Speaking on the sidelines of the group’s meeting in Bangkok, he told reporters that airlines underestimating pent-up demand had led to higher ticket prices, though supply was catching up, and airlines faced cost headwinds from oil prices and higher interest rates.

Travel in the Asia-Pacific region recovered more slowly than other parts of the world because of prolonged border closures, though Hong Kong, Taiwan and Japan recently reopened, leaving mainland China as the major outlier.

Despite that, some carriers like Singapore Airlines and Qantas Airways are reporting record levels of profitability and are returning cash to shareholders, based on strong pent-up demand and constrained supply, and despite the high oil prices.

Many Asian airlines like Hong Kong’s Cathay Pacific Airways , Taiwan’s China Airlines, and Korean Air relied on cargo for the majority of their revenue during the depths of the pandemic because of the depressed passenger market.

However, the cargo market has weakened relative to last year, amid global economic shocks arising from inflation, China’s zero-Covid policy, and the war in Ukraine. REUTERS

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

VIEW ALL

KEYWORDS IN THIS ARTICLE

READ MORE

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to  t.me/BizTimes

Transport & Logistics

SUPPORT SOUTH-EAST ASIA'S LEADING FINANCIAL DAILY

Get the latest coverage and full access to all BT premium content.

SUBSCRIBE NOW

Browse corporate subscription here