Asian air travel is supported by 2023 advance bookings – industry body | Tech US News

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BANGKOK, Nov 10 (Reuters) – A rebound in Asian air travel is “doing well” for 2023 based on advance bookings, Subhas Menon, director general of the Asia Pacific Airline Association (AAPA), said on Thursday.

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, even as supply was recovering and airlines faced headwinds from oil prices and higher interest rates.

Travel in the Asia-Pacific region has recovered more slowly than 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 outlier.

Despite this, some airlines such as Singapore Airlines Ltd ( SIAL.SI ) and Qantas Airways Ltd ( QAN.AX ) are reporting record levels of profitability and returning cash to shareholders on strong pent-up demand and tight supply, even as the oil prices are high.

Many Asian carriers such as Hong Kong’s Cathay Pacific Airways ( 0293.HK ), Taiwan’s China Airlines Ltd ( 2610.TW ) and Korean Air Lines Co Ltd ( 003490.KS ) have relied on cargo for most of their revenue during the depths of the pandemic. because of the depressed passenger market.

However, the cargo market has weakened relative to last year amid global economic shocks from inflation, China’s zero-covid-19 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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