Asia Pacific air carriers combined net profit in 2013 fell 55 per cent year on year to US$2.5 billion due to a decline in cargo volumes and increased competition, according to Shipping Gazette.
Cargo revenue declined 4.6 per cent to $20.2 billion caused by soft demand for air freighted goods manufactured in Asia and international air cargo fell 1.2 per cent in FTK last year, according to the Association of Asia Pacific Airlines (AAPA).
Operating revenue for the region's carriers totalled US$171.2 billion, 2.1 per cent less than in 2012.
AAPA director-general Andrew Herdman said Asia Pacific airlines' net profit margin stood at 1.5 per cent in 2013 compared to 2012's 3.2 per cent margin.
"Intense competition in both the passenger and air cargo segments led to pressure on fares, and weaker Asian currencies adversely affected costs, more so for those exposed to foreign debt," he said.
The airlines' combined operating expenses were slightly up against a lower fuel expenditure of $59.9 billion, 3.2 per cent lower than in 2012 due to a drop in average jet fuel prices of $123 per barrel.
The focus for airlines remains firmly on strict cost controls and further productivity improvements, he said, adding an optimistic note of the expectation of aupswing in trade.
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