KUALA LUMPUR, 2 March 2021: Airline operations remain
depressed, as the spread of Covid-19 variants resulted in tighter border
restrictions in international as well as domestic markets worldwide, according
to the Association of Asia Pacific Airlines (AAPA).

AAPA released preliminary January 2021 traffic figures on Monday that showed Asia Pacific airlines carried a combined 1.3 million international passengers in January, just 3.9% of the same month last year when 33.5 million passengers flew on the region’s carriers.

Offered seat capacity was 12.1% of the January 2020 volume,
while the international passenger load factor averaged 27% in January, a
significant 54 percentage point decline from the 81% achieved in the
corresponding month last year, when traffic volumes were still relatively
unaffected by the Covid-19 pandemic.

Growth in the e-commerce sector during the continued
recovery in the global manufacturing sector lent support to air cargo markets.
In January 2021, air cargo demand as measured in freight tonne-kilometres (FTK)
recorded a marginal increase of 0.3%, the first year-on-year growth in many
months, partly boosted by higher demand for air shipments ahead of the Lunar
New Year celebrations.

Offered freight capacity fell by 25% year-on-year,
reflecting the prevailing capacity crunch as a result of the decline in
passenger belly-hold space. The international freight load factor averaged
71.6%, or an 18 percentage point increase compared to the same month last year.

Commenting on the results, AAPA director general Subhas
Menon said: “Renewed efforts to contain Covid-19 through lockdowns and
border restrictions have again affected international passenger demand, which
remains close to a standstill.”

Menon added: “The uneven roll-out of vaccinations across the
world will only delay the full reopening of borders.  In this extremely challenging operating
environment, airlines are struggling to survive. While some airlines are
receiving financial support, further assistance would be needed for most
airlines to stay afloat, given that international borders remain largely

“Meanwhile, the industry is working with several
stakeholders to prepare the ground for the sustained resumption of air travel,
notably on contactless digitalized tools and passenger facilitation protocols
to ensure a safe and seamless journey for travellers. The Asia Pacific aviation
industry is committed to playing its part in the COVID-19 pandemic, through the
carriage of time-sensitive cargo supplies, especially vaccines, and the safe
repatriation of residents.”

(Source: AAPA)