Preliminary traffic figures for January 2025, released on Thursday by the Association of Asia Pacific Airlines (AAPA), reveal that international passenger markets experienced a strong start to the year, driven by a surge in leisure travel during the Lunar New Year holiday period.
Asia Pacific carriers recorded a solid 19.9% year-on-year growth in January, transporting a total of 35.2 million international passengers. Demand, measured in revenue passenger kilometers (RPK), rose by 22.5%, significantly outpacing the 17.4% year-on-year increase in available seat capacity. As a result, the average international passenger load factor improved by 3.5 percentage points, reaching 83.7%.
Despite growing uncertainties in the broader trade environment, air cargo markets also continued to see growth. Increased demand for consumer goods ahead of the festive season contributed to a 4.7% year-on-year rise in international air cargo demand, measured in freight tonne kilometers (FTK), building on the double-digit growth seen in January 2024. Expanding belly-hold space led to a 10.9% year-on-year increase in offered freight capacity. However, the average international freight load factor decreased by 3.3 percentage points, settling at 55.2% for the month.
Commenting on the results, Mr. Subhas Menon, AAPA Director General, stated, “Asia Pacific carriers had a strong start to the year, with both international air passenger and cargo markets showing positive growth, largely fueled by the timing of the Lunar New Year festivities.”
Mr. Menon also noted, “While load factors are high, reflecting robust demand, ongoing capacity constraints continue to pose challenges. These constraints are driven by factors such as the grounding of aircraft due to engine issues and delays in new aircraft deliveries. Additionally, these challenges have resulted in higher expenses related to maintenance, aircraft leasing, and labor, while increased competition has led to lower yields and tighter operating margins.”
Looking ahead, Mr. Menon concluded, “Growth prospects remain positive for the coming months, supported by steady global economic expansion. However, ongoing geopolitical tensions and trade uncertainties could pose risks to both business sentiment and consumer demand. The region’s airlines are closely monitoring these developments and are focused on managing costs effectively to improve operating efficiency.”
