17-May-2019 7:52 AM

AAPA: Asia Pacific airline profits were halved in 2018, outlook faces significant headwinds

Association of Asia Pacific Airlines (AAPA) reported (16-May-2019) preliminary 2018 financial performance figures show aggregated net earnings for Asia Pacific of USD4.7 billion, a decline of 51% year-on-year. AAPA reported continued expansion in the global economy underpinned further growth in air passenger and air cargo markets, but airlines faced an increasingly challenging operating environment marked by significantly higher jet fuel prices, adverse currency movements and rising pressures on non-fuel cost items. AAPA director general Andrew Herdman said: "Asian airlines are operating in highly competitive markets, and were not able to pass on the full cost impact of significantly higher fuel prices we saw in 2018". As a result, overall operating margins narrowed 1.8ppts to 4.9%. Mr Herdman said this represents an average profit level of just under USD5 per passenger. Mr Herdman said Asia Pacific airlines "continue to face significant headwinds in the form of persistent cost pressures, stiff competition as well as further volatility in oil and currency markets". [more - original PR]

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