Air travel is now truly open. That’s the view of the Association of Asia Pacific Airlines (AAPA) Director General Subhas Menon opening the 67th Assembly of Presidents in Singapore.
“Most economies have reached or exceeded pre-pandemic levels of connectivity. Domestic air travel has surpassed 2019 levels. International air travel will reach 2019 levels by year-end, Mr Menon told delegates.
“The strong demand for services in 2023, especially air travel, spurred the IMF to raise its forecast for global EDP growth. Growth in tourism hubs is particularly strong in conjunction with the shift in exports from goods to services.
“As the region’s borders reopened after the rest of the world, Asia Pacific Air travel recovery at 69%, trails other regions for the year to September, but growth is still dramatic.
“Asia Pacific passenger traffic increased 171% over the same period in 2022, while capacity growth was a slower 130%.”
Mr Menon said that China is the last market to reopen.
“Before COVID-19, China was the largest market accounting for a fifth of Asia Pacific’s international travel. This is now 10% in 2023.
China’s air travel demand is growing at around 1000%, but it is still at 34% of 2019 levels.
“Air travel demand in India is 20% above 2019 levels and the World Travel and Tourism Council noted, Indian travel is set to become a $15.5 trillion industry in 2033.
This is 50% more than in 2019. Tourism will grow 5.1% for their employee, one in every nine jobs.
The return of Chinese travelers in 2024 will kick off another wave of growth for global tourism,” said Mr Menon.
But Mr Menon warned that “industry recovery has been slowed by inflation, a tight job market, supply chain constraints, and fuel prices which are still higher than in 2019.
“Non-oil costs are also escalating in areas like ground handling, and taxation, thus squeezing profit margins for airlines.
“Now, labour is not in short supply in Asia, but there are many job vacancies in aviation.
He added that the industry could “not fault former airline workers if they are once bitten twice shy, as no industry came to a near standstill for as long.”
Mr Menon also said that supply chain issues are limiting the ability of airlines to upgrade their fleets and service their aircraft on time leading to an increase in travel disruptions.
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