Kuala Lumpur,29th April 2025:
Preliminary March 2025 traffic figures released by the Association of Asia Pacific Airlines (AAPA) showed continued growth in international passenger markets, in line with long-term historical trends.
Asia Pacific carriers carried a total of 31 million international passengers, representing a 6.9% year-on-year increase compared to the same month last year. Demand, as measured in revenue passenger kilometres (RPK), rose by 9%, while available seat capacity grew by 11% year-on-year, resulting in a 1.4 percentage point decline in the international passenger load factor, which averaged 80.8%.
Meanwhile, international air cargo demand, measured in freight tonne kilometres (FTK), registered a 5.7% year-on-year increase in March, supported by forward demand in shipments ahead of potential imposition of tariffs. Offered freight capacity expanded by 4.7%, leading to a marginal 0.5 percentage point rise in the average international freight load factor to 64% for the month.
Commenting on the results, Subhas Menon, AAPA Director General, said, “Asia Pacific airlines carried a total of 95.6 million international passengers in the first quarter of 2025, a 13% year-on-year increase that marked a strong start to the year, following the solid 29% growth seen in 2024. This came on the back of international route expansion, liberalised visa regimes, and resilient economic activity across the region.”
“On the cargo front, demand rose by 5% year-on-year in the first quarter, extending the solid 15% annual growth achieved in 2024. Anticipation of US tariff announcements prompted front-loading of air shipments on selected routes, while robust e-commerce activity continued to support overall demand.”
Looking ahead, Subhas Menon said, “The sweeping U.S. tariff announcements have resulted in volatile activity across the world’s stock markets, casting uncertainty over the outlook for Asia’s export-oriented economies, many of which serve as major manufacturing hubs. This could weigh on consumer and business sentiment, potentially softening passenger and cargo demand in the coming months.”
“In addition, operational challenges resulting from persistent supply chain issues, including aircraft delivery delays, continue to constrain capacity expansion. As a result, airlines face elevated operating costs, including high maintenance, leasing and personnel expenses. In response, Asia Pacific carriers remain focused on driving cost efficiencies, whilst continuing to expand their networks and pursue customer service innovation.”
