Preliminary financial performance figures released by the Association of Asia Pacific Airlines (AAPA) revealed a strong rebound in the earnings of Asia Pacific airlines in 2023, following three consecutive years of losses. Combined net earnings totalled a solid US$8.8 billion for the calendar year.
For the year, Asia Pacific airlines achieved operating revenues totalling US$198.1 billion, a 54.8% jump compared to the US$128.0 billion recorded in 2022. Average cargo yields remained above pre-pandemic levels.
Meanwhile, operating expenses rose by 30.9% to a combined total of US$182.6 billion in 2023, in tandem with the ramp-up in flight frequencies and restoration of networks. Fuel expenditure rose by 41.5% to US$57.7 billion, in part mitigated by a 20.0% fall in global jet fuel prices to an average of US$113.4 per barrel. The share of fuel expenditure as a percentage of total operating costs increased by 2.4 percentage points to 31.6%.
Meanwhile, non-fuel costs increased by 26.5% to US$124.9 billion as a result of higher expenditure on staff as well as landing fees and en route charges, said a release.