Japan Airlines' (JAL) monthly traffic report showed the airline group carried 8,295 international passengers in May, a 98.9% reduction from 756,810 passengers in the prior corresponding period. Demand, or revenue passenger kilometres (RPK), was down 98.9% and capacity, or available seat kilometres (ASK), was cut by 94.7%.Read More » Load factor dropped 61.5 percentage points to 18%.
The oneworld alliance member said domestic passengers declined 92.4% to 244,974 for the month. RPKs were down 92.5% and ASKs collapsed by 73.9% in the 31-day period. The 22.5% domestic load factor in May was 51.3 percentage points lower than 73.8% 12 months ago.
The International Air Transport Association's (IATA) latest forecast published overnight showed the air transport industry was expected to post losses of US$84.3 billion in calendar 2020 and US$15.8 billion the following year, compared with a net profit of US$26.4 billion in 2019.
Revenue is forecast to fall by 50% to US$419 billion in 2020, from US$838 billion in 2019. IATA director general and CEO, Alexandre de Juniac, said the figures indicated airlines would lose US$37.54 per passenger in 2020, based on an expected 2.2 billion passengers transported in the year.
Shares in Cathay Pacific have risen by about 1% the day after the airline group announced a HK$39 billion (US$5 billion) recapitalisation plan that involves the Hong Kong government taking equity in the airline group. At 1500 local time today on the Stock Exchange of Hong Kong, Cathay Pacific shares were at HK$8.92, up 11 HK cents, or 1.25%, from yesterday's closing price of HK$8.81 on a day the broader market was in the red.
Hong Kong Finance Secretary, Paul Chan Mo-po, told reporters yesterday the government's investment in Cathay Pacific aimed to "protect Hong Kong's role as a leading international aviation hub in this region as well as the long-term overall economic development of Hong Kong, while generating a reasonable return for the government". Chan said it was "not the intention of the government to hold this investment long-term".
The Hong Kong government would appoint "seasoned professionals or business leaders" to the two observer positions being created on the board to reflect the Special Administrative Region's 6.08% holding in the company.
"It is not my intention to appoint any government officials," Chan said. He added the government would not interfere with the operation and management of the airline group.
Hyundai Development Company (HDC) has called for the terms of its proposed acquisition of Asiana Airlines to be renegotiated to "reflect the current market conditions and the company's current financial status", local media reported yesterday. Since a consortium led by HDC and Mirae Asset Daewoo was named the preferred bidder for Asiana in late 2019, the airline has been battered by the coronavirus pandemic and has been the recipient of financial support from the Korea Development Bank and Export-Import Bank of Korea.
Hong Kong-based HK Express said in a statement today it would extend the temporary grounding of its fleet due to the coronavirus pandemic for another three weeks, with flights to resume on July 12 “subject to market developments". The LCC previously had announced it would restart flying on June 18. It is the second time the 100% subsidiary of the Cathay Pacific Group extended the temporary suspension of its flight operations since it stopped flying on March 23.
Korean Air (KAL) said today it had introduced a new boarding procedure for economy class passengers on all flights as part of social distancing measures to prevent the spread of COVID-19. In a statement, KAL said the "back to front" boarding system, with passengers seated in the rear rows of the aircraft to board first, would help minimise contact between passengers.
Japan’s All Nippon Airways (ANA) said today it would introduce online check-in for domestic flights in Japan. From June 24, passengers will be able to check in online and use digital boarding passes at security checkpoints and for boarding aircraft. ANA senior vice president, Masaki Yokai, said the initiative built on the existing online check in service for international flights and hoped it would "allow passengers to feel safe while travelling and provide flexibility in their travel plans".
