Asia air travel buoyed by 2023 forward bookings – industry body

BANGKOK, Nov 10 (Reuters) – Asia’s air travel rebound is “doing well” in 2023 based on forward bookings, Asia-Pacific Airlines Association chief executive Subhas Menon said on Thursday. (AAPA).

Speaking on the sidelines of the group’s meeting in Bangkok, Menon told reporters that airlines underestimating pent-up demand had led to higher ticket prices, although supply was catching up and airlines face headwinds from oil prices and rising interest rates.

Travel in the Asia-Pacific region has recovered more slowly than in other parts of the world due to prolonged border closures, although Hong Kong, Taiwan and Japan have recently reopened, leaving mainland China as the main exception.

Despite this, some carriers like Singapore Airlines Ltd (SIAL.SI) and Qantas Airways Ltd (QAN.AX) are seeing record levels of profitability and returning cash to shareholders due to strong pent-up demand and limited supply, even if oil prices are high.

Many Asian airlines like Cathay Pacific Airways from Hong Kong (0293.HK), China Airlines Ltd from Taiwan (2610.TW) and Korean Air Lines Co Ltd (003490.KS) have relied on cargo for the majority of their revenue at the height of the pandemic. due to the depression in the passenger market.

However, the freight market weakened compared to last year due to global economic shocks from inflation, China’s zero COVID policy and the war in Ukraine.

Reporting by Chayut Setboonsarng in Bangkok, additional reporting by Jamie Freed in Sydney Editing by Ed Davies

Our standards: The Thomson Reuters Trust Principles.

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