Air passenger demand in AsPac plummets 65% in March

Asia Pacific airlines saw passenger demand plummet by more than half in March in what the International Air Transport Association (IATA) dubbed as a “disastrous month for aviation.”

IATA said March traffic among Asia Pacific carriers dropped by 65.5 percent compared to the same month last year.

The decline was more than double the 30.7 percent yearon-year decrease recorded in February.

Capacity of Asia Pacific airlines fell by 51.4 percent and load factor collapsed by 23.4 percentage points to 57.1 percent during the month.

“March was a disastrous month for aviation. Airlines progressively felt the growing impact of the COVID-19 related border closings and restrictions on mobility, including in domestic markets,” IATA director general and CEO Alexandre de Juniac said.

“Demand was at the same level it was in 2006, but we have the fleets and employees for double that. Worse, we know that the situation deteriorated even more in April and most signs point to a slow recovery,” De Juniac said.

AirAsia Group Bhd has reported fewer passengers flown by its Philippine operations in the first quarter as the COVID-19 pandemic started to take its toll.

AirAsia Philippines flew 1.8 million passengers during the quarter, nine percent lower from the same quarter last year, the group said.

Meanwhile, the country’s largest budget carrier Cebu Pacific reported a P1.18 billion net loss in the first quarter, a sharp turnaround from the P3.36 billion net income it posted in the same period last year.

Cebu Pacific recorded a 16.5 percent year-on-year drop in passenger traffic to 4.4 million, driven by lesser number of flights coupled with a decrease in seat load factor to 81.3 percent.

“The industry is in free fall and we have not hit bottom. But there will come a time – soon, I hope – when authorities will be ready to begin easing restrictions on mobility and opening borders,” De Juniac said.

“It is imperative that governments work with industry now to prepare for that day. It is the only way to ensure that we have measures in place to keep passengers safe during travel and reassure governments that aviation will not be a vector in the spread of the disease,” he said.