Asia-Pacific airlines passenger reduce

Asia-Pacific airlines suffered a 5.7 per cent drop in passenger numbers and an 11 per cent slump in cargo traffic in 2009 as they weathered their worst ever downturn, an industry body said Friday. The Association of Asia Pacific Airlines said that the collapse in corporate travel and intense price competition during the global recession saw airline revenues tumble 20-25 per cent. 'We have been through downturns before, but none as severe as we've experienced in the past two years,' AAPA director general Andrew Herdman said in a statement. Airlines cut flights and cargo capacity, and shaved back on costs, but were still not able to fully offset the effects of sharply lower revenues, compounded by continuing volatility in oil prices, he said. 'Overall, Asia Pacific airlines are expected to report significant losses for 2009, following similar heavy losses suffered in 2008,' he said. However, Herdman said traffic numbers in recent months had shown signs of recovery. 'The cargo business is regaining some of its dynamism, and passenger demand on short haul leisure routes within the region has already picked up, although business travel demand is recovering more slowly,' he said. Regional airlines faced the task of ' conserving cash, rebuilding damaged balance sheets, and carefully managing capacity to match demand as they work towards restoring profitability.' 'Whilst we remain hopeful about future prospects, the outlook for 2010 very much depends on the sustainability of what still appears to be a rather fragile global economic recovery.' The International Air Transport Association has said it expects Asia- Pacific carriers to lose $700 million this year, an improvement from the $3.4 billion lost last year. Singapore Airlines posted its first quarterly loss in six years during the June 2009 quarter and deferred the delivery of eight A380 superjumbos. Australia's Qantas and Hong Kong's Cathay Pacific also saw earnings slump.