Asia-Pacific carriers to suffer $10b loss in 2022: IATA
This will narrow to a $6.6b loss in the following year.
Carriers in the Asia Pacific region are projected to post a $10b loss in 2022, dragged by China’s zero COVID policies on travel, the International Air Transport Association (IATA) reported.
This loss is expected to narrow to $6.6b in 2023 as passenger demand is seen to grow by nearly 60%, outpacing capacity growth of over 47%.
In 2022, IATA estimated the region to serve 70.8% of pre-crisis demand levels with 75.5% of pre-crisis capacity.
“Asia-Pacific is critically held back by the impact of China’s zero COVID policies on travel and the region’s losses are largely skewed by the performance of China’s airlines who face the full impact of this policy in both domestic and international markets,” the report read.
“Taking a conservative view of progressive easing of restrictions in China over the second half of 2023, we nevertheless expect strong pent-up demand to fuel a quick rebound in the wake of any such moves. The region’s performance receives a significant boost from profitable air cargo markets, in which it is the largest player.”
Read more: SIA Group's passenger volume rises 6.2% in October
The performance of the region lagged behind carriers in North America which saw a profit of $9.9b in 2022. Asia Pacific carriers paled in comparison to European, Middle East, Latin American, and African carriers which registered losses, ranging from $638m to $3.1b.
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