SYDNEY- Passenger airline traffic in the Asia-Pacific region should recover to around 73 percent of 2019 levels by year-end as travel restrictions relax, up from 53 percent in August, the Asia-Pacific head of airline industry group IATA said on Tuesday.
“There is no mistaking I think the momentum is very strong especially with all major markets in the Asia-Pacific now open except for China,” IATA Regional Vice President, Asia Pacific, Philip Goh told reporters on a webinar.
Asia’s aviation recovery has lagged other parts of the world in large part because of China’s ongoing border closures that have kept its international passenger numbers averaging only 2 percent to 3 percent of pre-pandemic levels, according to IATA data.
The year-end traffic estimate is based on China opening its borders soon, though the actual date remains unclear, Goh said.
In positive news for airlines, Japan resumed visa-free travel for tourists on Tuesday, Taiwan will end quarantine for arrivals on Thursday and Hong Kong stopped quarantine last month.
International passenger traffic in the region was at 38 percent of 2019 levels in August, according to IATA, which estimates it will take until 2025 to reach pre-pandemic levels.
Earlier, IATA said the global air travel industry’s recovery from the COVID pandemic was gaining momentum, but high fuel prices will put pressure on airlines.
Globally, passenger traffic in July was at about 75 percent of pre-pandemic levels, helped by strong demand for domestic services where traffic had recovered 86.9 percent of the level seen in July 2019, the body said.
International traffic, however, had recovered 67.9 percent of the pre-pandemic levels in July, lagging behind domestic demand.
International Air Transport Association (IATA) Director General Willie Walsh, on a call with reporters, described it as a “solid recovery”, helped by demand in the northern hemisphere over the summer and increased domestic activity in China.
However, Walsh warned that high jet fuel prices would continue to put pressure on airlines’ cost base for the rest of the year, which he described as a challenge for carriers.
“I am aware of some airlines that have embarked on hedging in recent months … just to provide themselves with some protection against the volatility that we’re witnessing,” he said. — Reuters
