Southeast Asia airline sector endures a rough and unprofitable 2014 but outlook for 2015 is brighter
Challenging market conditions and overcapacity have taken a huge toll on Southeast Asia's airline sector. An overwhelming majority of the region's airlines were unprofitable in 2014 across both the low-cost and full-service models.
Only seven of Southeast Asia's 18 publicly traded airlines or subsidiaries/affiliates that report financial results were profitable on an operating basis in 2014. Combined, this sampling of 18 airlines incurred operating or EBIT losses of nearly USD1 billion in 2014 compared to a slight profit of about USD150 million in 2013.
The big year-over-year swing is a reflection of the challenging market conditions throughout the region as it metamorphoses. Of the 18 airlines in this sampling, only six achieved improved operating figures in 2013, including four from the Philippines.
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