ASEAN KEY DESTINATIONS
International air travel increasing
“The recovery in demand has been faster than anticipated. But, as we look towards the end of the year, the pace of the recovery will likely slow,” Giovanni Bisignani, IATA director general and chief executive said in a statement.
IATA said international passenger demand in July rose 9.2 percent year-on-year, while international freight traffic showed a 22.7 percent improvement.
The July global passenger traffic was 3 percent higher than the pre-crisis level of early 2008.
IATA said Asia-Pacific carriers outperformed the industry average with a 10.9-percent growth in July. This is consistent with the region’s 10.6-percent year-to-date growth.
“Leading the industry recovery, the region’s carriers are expected to report a profit of $2.2 billion.
This will be the largest gain in dollar terms in 2010 compared to 2009,” IATA said.
In the Philippines, the flag carrier reported a net income of $31.6 million in the April to June period on revenues of $426.7 million.
Cebu Pacific recorded a net income of P3.09 million in the January to June period, and revenues of P14.91 billion.
The country’s Civil Aeronautics Board (CAB) earlier projected that the international air travel market is likely to grow 10 percent this year.
Data from the regulator showed that international passenger volume climbed 11.6 percent to 3.44 million in the first quarter, from 3.08 million the same period last year.
Of the total, 1.64 million were inbound passengers and 1.8 million, outbound passengers.
“Improving demand is an important component of the recovery. But it must translate to the bottom line. The anticipated 2010 profit of $2.5 billion is only a 0.5 percent return on revenues.
Hence, the financial situation of the industry remains fragile,” Bisignani said.
He said costs remain a critical element for the recovery of the industry.
“This year has been marked by strikes and threats of strikes at airlines, and with airports and air navigation service providers,” the IATA official said.
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