Asia-Pacific Feb air passenger traffic plunges 94% on year, but cargo demand rises: AAPA

Asia-Pacific air passenger traffic plunged 93.7% year on year in February as nations maintained strict border controls due to the global pandemic, Association of Asia-Pacific Airlines data released March 29 showed.

Asia-Pacific airlines carried only 1.2 million international passengers in February, just 6.3% of the 18.3 million recorded in the same month a year earlier, the AAPA data showed.

Available seat capacity was 14.9% of levels registered last year, and the average international passenger load factor of 24.8% for the month underscored the extremely weak demand conditions, AAPA said.

"During the first two months of the year, Asian airlines carried just 4% of the number of international passengers that flew in the corresponding months of 2019, before the pandemic decimated travel," AAPA Director General Subhas Menon said. While economic activity was rebounding globally, the travel and tourism sectors remained severely curtailed by differing travel requirements and restrictions, and the unpredictability surrounding further changes, he added.

International air cargo demand, as measured in freight ton kilometers, rose 7.6% year on year in February on the back of the rebound in trade activity, but could not offset the collapse in passenger revenue.

"With travel markets shuttered by border closures, airlines will require further government support to weather the crisis," AAPA said.

Jet fuel prices extend decline

The weak demand for aviation fuels was reflected in the FOB Singapore cash differential, which was assessed at minus 60 cents/b to the Mean of Platts Singapore jet fuel/kerosene assessment March 29, down 18 cents/b or 42.86% month to date, S&P Global Platts data showed.

In the derivatives market, the M1/M2 timespread remained in a contango structure of minus 36 cents/b at the 0830 GMT Asian close March 29, down 23 cents/b since the start of the month, Platts data showed. The M1/M2 market structure was last in a backwardated structure on Jan. 31, 2020 at plus 48 cents/b.

Further ahead, the Q2/Q3 quarterly spread -- an indication of near term sentiment -- was assessed at minus 81 cent/b, down 60 cents/b since March 1.

Source: Association of Asia-Pacific Airlines

RPK: Revenue passenger kilometers

ASK: Available seat kilometers

FTK: Freight ton kilometers

FATK: Available freight ton kilometers

PLF: Passenger load factor

FLF: Freight load factor