In the news: APAC airlines reported improved financial performance; Trip.com, HanaTour boost service delivery with new solutions
Aviation: APAC airlines flew high in 2017 with US$8.8bil net earnings
Asian airlines saw strong growth in international passenger traffic. (Image credit: Liufuyu/iStock-Getty Images)
2017 was a good year for Asia Pacific airlines as they achieved healthy combined net earnings of US$8.8 billion, up 31.6%, underpinned by strong growth in air passenger and higher average load factors
“The global economy saw broadly based growth in advanced and emerging markets, boosting both business and leisure travel demand. … At the same time, moderate capacity expansion lent support to airline yields,” stated the Association of Asia Pacific Airlines (AAPA) when releasing the preliminary figures.
Asian airlines saw international passenger traffic recording a robust annual growth rate of 8.6%, supported by the widespread availability of affordable airfares and continued expansion in network connections.
Passenger revenue increased by 6% to US$135.6 billion. Intense competition led to a marginal 1% decline in passenger yields to 7.9 US cents per RPK (revenue passenger kilometre) although the decline was less severe compared to previous years.
AAPA revealed fuel costs rose significantly, by 19.6% to US$40.6 billion, as global jet fuel prices climbed 24.5% to average US$65.40 per barrel. The share of fuel expenditure as a percentage of total operating expenses rose by 2.2 percentage points to 24.6%.
Non-fuel expenditure also increased, by 5.6% to US$124.4 billion, in line with higher traffic volumes.
Despite the positive financial report card Andrew Herdman, AAPA director general, noted that the region’s airlines continued to face “some significant headwinds in the form of stiff competition and increased cost pressures from markedly higher fuel prices and rising labour costs.”
This was a reflection of “the highly competitive business environment, the average operating margin was 6.6% for the year, with net profits of just over US$6 per passenger,” he added.
Looking ahead Herdman forecasted the ongoing expansion in the global economy bodes well for Asian airlines. “Overall, Asian airlines continue to evolve in the face of changing market dynamics, implementing measures to increase efficiency and carefully control operating costs whilst seeking opportunities to maximise revenue.
“In addition, the region’s airlines remain focused on enhancing business performance through increased investments in new technologies and modern fuel efficient aircraft.”
Distribution News: Trip.com, HanaTour implement instant air search solution to speed up service
Travellers want speed, accuracy and booking availability when buying travel. (Image credit: Zentangle/ iStock-Getty Images)
Speed, accuracy and booking availability are features in an online travel agency’s website that could not only change lookers to bookers, but may encourage customers to return for future travel services.
Realising this, Trip.com and HanaTour have partnered with Amadeus to adopt Amadeus Master Pricer, the air search solution for travel retailers that provides the cheapest bookable fares and convenient itineraries with immediate response
Trip.com, a leading provider of travel services owned by China’s Ctrip Group, has adopted Amadeus solution through a five-year technology agreement.
“In today’s world of online travel it’s not an exaggeration to say that every second counts. Amadeus’ solution delivers a powerful combination of speed, accuracy and booking availability that our customers want, and this is critical to helping Trip.com differentiate its offering,” said Jane Sun, CEO of Ctrip Group.
She added that the partnership would support the OTA’s rollout to English speaking customers in international markets.
Korea’s largest travel company, HanaTour, is using Amadeus Master Pricer to power its global expansion and technology innovation
Visitors to the company’s global website can now search flights by dates, fares or destination and receive the best airfare recommendations and travel ideas tailored to their specific needs.
The agreement that HanaTour signed with Amadeus also saw the completion of a major project to upgrade its international website to give travellers faster online search results and more choices when making travel bookings.
HanaTour will also have access to Amadeus’ innovative suite of solutions to enhance its customer service and become more efficient through automation.
• Featured image credit: Orla/iStock-GettyImages
