Despite eased travel restrictions, airlines in Asia- Pacific including the Philippines still face another challenge given the impact of the current conflict between Russia and Ukraine, according to the Association of Asia Pacific Airlines (AAPA).
But local airline operators are optimistic of strong demand during the summer season as Metro Manila and majority of destinations shift to Alert Level 1, allowing all public transportation including aviation to increase capacity to 100 percent.
AirAsia Philippines reported recording 145,978 seats sold for travels from March 1 to 31, 2022 alone, up by 131 percent from the same month in 2021.
“We are confident that summer 2022 is really the onset of recovery not only for AirAsia Philippines, but also to all other airlines in the country. We expect travel to flourish especially with different festive seasons we have from April to May. We are also expecting a sustained demand until May due to voters coming home to the provinces in preparation for the May 2022 election,” said Steve Dailisan, AirAsia Philippines spokesperson.
In a statement, Subhas Menon, AAPA director general said the current escalating conflict in Ukraine may have a wider operational and economic impact on Asian airlines, while elevated fuel prices threaten to suppress earnings in an industry already struggling to survive.
Menon said while travel restrictions have been relaxed, more progress can be achieved to increase confidence in the travel process with greater harmonization and easing of cross border travel measures based on risk assessment.
“AAPA continues to work cooperatively with industry stakeholders and governments for the safe and sustained recovery in air travel,” he added.
In January this year, air passenger traffic volumes remained depressed but air cargo traffic reported growth.
AAPA showed international passenger demand remained markedly depressed compared to pre-pandemic levels, as a result of the reintroduction of onerous travel restrictions due to the spread of the Omicron variant.
The region’s airlines carried a combined 2.7 million international passengers in January, representing 8.1 percent of the 35.2 million recorded during the same month in 2019.
Measured in revenue passenger kilometers, international passenger demand averaged only 8.9 percent of 2019 levels, while available seat capacity was 17.9 percent of 2019 volumes.
AAPA said the international passenger load factor averaged 41.3 percent, the second consecutive month where load factors surpassed the 40 percent mark.
Meanwhile, the opening month of 2022 saw further growth in international air cargo markets, underpinned by increased shipments ahead of the Lunar New Year festive period, AAPA noted.
Overall, international air cargo demand in January as measured in freight ton kilometers rose 5.1 percent year-on-year, on top of the 20 percent annual increase achieved for the full year 2021, it added.
“Air cargo is a bright spot for Asian airlines, with strong demand for air shipments continuing unabated in January. While year-on-year growth rates are expected to moderate in the coming months, conditions for air cargo remain positive, in tandem with further expansion in global economic activity,” Menon said.
