Asia-Pacific carriers net profit up 7% in 2012

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Asia-Pacific airlines have reported a combined net profit of $5.2 billion in 2012, an increase of 6.7% compared with $4.8 billion a year ago.

Sustained growth in passenger markets led to the rise in earnings, says the Association of Asia Pacific Airlines (AAPA).

Operating revenues for the region's carriers rose by 7.6% to $175 billion, compared with $163 billion reported in 2011. Passenger revenues grew by 8.5% to $134 billion, while cargo revenues fell by 3.3% to $21.1 billion in 2012.

Operating expenses increased by 7% to $167 billion, largely because of a 12% surge in fuel costs to $58.8 billion.

Asian airlines' international passenger traffic, as measured in RPKs, grew by 5.8%, whereas international cargo traffic, expressed in freight tonne kilometres, fell by 3.4% in 2012.

Andrew Herdman, director general, AAPA, says: "With consumer and business confidence both holding up relatively well in the Asia-Pacific region, we are seeing further growth in passenger numbers this year. Overall, Asian airlines are expected to remain at the forefront in promoting further development of the global airline industry, with continued investments in fleet expansion and customer service innovation."