All 7 AirAsia affiliates improve in 1Q2016: Southeast Asian airlines' profits increase 50%
Southeast Asia’s airline sector experienced a further improvement in profitability in 1Q2016, boosted by lower fuel prices and more favourable conditions in most of the region’s main markets. However, profitability in Southeast Asia remains at a much lower level than in most other regions due to intense competition and overcapacity in some markets.
A sampling of 20 Southeast Asian airlines recorded approximately a 50% increase in operating profits in 1Q2016. Among the 20 airlines, 14 reported year-over-year improvements, including all seven of the AirAsia-branded airlines.
The increase in profits to nearly USD700 million in 1Q2016 follows a significant improvement in profitability in 2015. The same group of 20 Southeast Asian airlines swung from a collective operating loss of over USD800 million in 2014 – when market conditions were extremely challenging – to a profit of more than USD1.2 billion in 2015. With 1Q2016 profits at a level of more than half the 2015 full year profits, the outlook for 2016 is now relatively bright.
Become a CAPA Member to access Analysis Reports
Our Analysis Reports are only available to CAPA Members. CAPA Membership provides exclusive access to in-depth insights on the latest developments in the aviation and travel industry, developed by our team of dedicated analysts located in Europe, North America, Asia and Australia.
Each report offers a fresh perspective on the latest industry trends and is available online or via the CAPA mobile app, with customisable alerts to help you stay informed and identify new business opportunities.
CAPA Membership also provides access to our full suite of tools, including a tailored selection of more than 400 News Briefs every weekday and comprehensive data and analysis on thousands of companies around the world.