Asian Load Factors Sagging

The Center for Asian Pacific Aviation newsletter reports Monday:

"Several Asia Pacific airlines are reporting worrying declines in average load factors as the year progresses, in a sign that rising travel costs and a slowing world economy are have an impact on demand.

Key points:

• (Singapore Airlines) reports 3.2 points reduction in load factor to 79.2% in June 08;
  
• Mainland Chinese carriers report further steep declines in load factors in Jun;
  
• China Southern cutting executive salaries – symbolic move
  
• Cathay Pacific’s capacity surges 16% in Jun
  
• AAPA warns ticket price increases threaten to undermine growth;
  
• AAPA calls on industry to work together to reduce costs – airlines need to make some 'tough decisions.'"

[AAPA is the Association of Asia Pacific Airlines, representing 17 carriers in the region.]

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