The Middle East and Asia-Pacific regions had a steady growth in passenger and cargo air traffic during the second quarter of 2022, but airport financial margins are still significantly below levels from before the pandemic, according to a new study published on Monday.
Despite the trend toward improvement, quarterly revenues are still 60 percent below 2019 levels, remaining at an unsustainably low level, according to Airports Council International (ACI), Asia Pacific.
In the first quarter of 2022, overall operational expenses dropped compared to pre-crisis levels, however, the fall was significantly slower than it was the previous year.
According to the ACI’s Industry Outlook, the first quarter was volatile due to strict travel restrictions in some places and persistent headwinds from political unrest in Eastern Europe.
According to the report, while the Middle East and South Asia have recovered to approximately 85 percent of Q2 2019 seat capacity, Emerging East Asia, which includes China, is only at 15 percent of the 2019 Q2 level, as China implemented a zero-Covid strategy and renewed lockdowns. The majority of East Asian countries rely heavily on Chinese passengers.
Meanwhile, even as the industry faces major downturns, pent-up demand for leisure air travel will continue to support the industry’s recovery, with many airports already operating at capacity during peak periods, despite overall footfall being lower than in 2019.
Seat capacity in the Middle East and Asia-Pacific in Q2 2022 is up 89 percent from pre-pandemic levels, but international seat capacity is still down 59 percent, as travel restrictions, quarantine, and testing requirements continue to impact the market, particularly in China and partially in Japan.
Additionally, the paper noted that actual cargo tonnage in the first quarter of 2022 was higher than in the same quarter in 2019.
Moreover, international tourism experienced a strong recovery in the first five months of this year, with approximately 250 million tourists registered, compared to 77 million for the same period in 2021, implying that the sector recovered by 46 percent compared to pre-pandemic levels in 2019.
