Kuala Lumpur, Malaysia – Preliminary financial performance figures for 2007 released today by the Association of Asia Pacific Airlines showed that leading Asia Pacific airlines had a successful year. Combined revenues reached USD103 billion, 11% higher than the USD93 billion reported in 2006.  International passenger traffic volumes set a new record, growing by 4.2%, and the passenger load factor rose to a record high of 77.1%.  The volume of international air cargo carried also set a new record, although the growth rate was a more modest 2.7%.

Overall, AAPA member airlines reported aggregate profits of USD 5.2 billion, representing a 5% net margin, a marked improvement on the 3% net margin recorded in 2006. Carriers benefited from prudent capacity management and tight cost controls, despite the impact of high oil prices which resulted in a fuel bill of USD27 billion, representing almost 30% of total airline costs.

Commenting on the results, Mr. Andrew Herdman, AAPA’s Director General said, “Asia Pacific airlines delivered some excellent results in 2007, with strong regional economies boosting demand for both business and leisure travel. Tight cost controls and prudent capacity management led to improved margins, despite the impact of persistently high oil prices.”

Mr. Herdman added: “After a very successful 2007, Asia Pacific airlines are well placed to meet both the opportunities and challenges which lie ahead. So far this year, we’re still seeing steady growth in both passenger and cargo demand, but there is a growing sense of unease about the likely impact of slowing global economic growth coupled with cripplingly high oil prices. Airlines are therefore bracing themselves for some turbulence in the remainder of the year.”