Dian Kuswandini, The Jakarta Post, Jakarta
Despite a significant growth in the number of airline passengers in the first quarter of this year, the full-year outlook remains gloomy due to rising fuel prices and lower spending power as inflation climbs, an industry association says.
The Central Statistics Agency (BPS) reported last week that the country saw a 25.61 percent rise in the number of domestic flight passengers to 8.3 million in the first quarter, up from 6.1 million in the same period last year. Passengers of international flights rose 14.17 percent to 1.6 million from 1.4 million during the same period.
BPS said the first quarter figures showed that the country's airline industry was on the right track to recovering from its slump in 2007, when overall passengers declined by over two million from 2006.
However, the Indonesian National Air Carriers Association (INACA) disputed the suggestion, saying that the encouraging trend in the first quarter was very unlikely to continue for the rest of the year.
"Some airlines have had to increase their fuel surcharges for customers due to higher jet fuel prices. This in the medium and long term will discourage people from traveling by airplane," said INACA secretary-general, Tengku Burhanuddin, on Saturday.
Jet fuel prices have increased in past years in accordance with the rise of global crude oil prices.
On the other hand, Tengku said, with the inflation rate starting to climb, customers' purchasing power was expected to decline, hurting their spending ability.
"People nowadays are very selective about spending their money. Before, people could travel by airplane frequently, but now they may have to prioritize. If it's not that important, they will choose a cheaper means of transportation."
Last Friday BPS reported that inflation in the first four months of 2008 stood at 4.01 percent, more than half of the government's full-year target of 6.5 percent.
Moreover, Tengku continued, Adam Air's license revocation earlier this year would also reduce the industry's capacity to serve passengers.
"The closure of Adam Air has caused a cutback in passenger capacity. Logically, as capacity has been reduced, fewer passengers can be served," Tengku said.
Adam Air flew around 6 million passengers in 2007, from a total of 34.863 million passengers carried by the industry.
Tengku's bleak outlook is line with a statement from the International Air Transport Association (IATA), which last Friday said the growth of international air traffic would halt due to soaring fuel costs and global economic slowdown.
International traffic in March grew only by 4 percent from the same month last year, the IATA said as reported by AFP.
Despite a significant growth in the number of airline passengers in the first quarter of this year, the full-year outlook remains gloomy due to rising fuel prices and lower spending power as inflation climbs, an industry association says.
The Central Statistics Agency (BPS) reported last week that the country saw a 25.61 percent rise in the number of domestic flight passengers to 8.3 million in the first quarter, up from 6.1 million in the same period last year. Passengers of international flights rose 14.17 percent to 1.6 million from 1.4 million during the same period.
BPS said the first quarter figures showed that the country's airline industry was on the right track to recovering from its slump in 2007, when overall passengers declined by over two million from 2006.
However, the Indonesian National Air Carriers Association (INACA) disputed the suggestion, saying that the encouraging trend in the first quarter was very unlikely to continue for the rest of the year.
"Some airlines have had to increase their fuel surcharges for customers due to higher jet fuel prices. This in the medium and long term will discourage people from traveling by airplane," said INACA secretary-general, Tengku Burhanuddin, on Saturday.
Jet fuel prices have increased in past years in accordance with the rise of global crude oil prices.
On the other hand, Tengku said, with the inflation rate starting to climb, customers' purchasing power was expected to decline, hurting their spending ability.
"People nowadays are very selective about spending their money. Before, people could travel by airplane frequently, but now they may have to prioritize. If it's not that important, they will choose a cheaper means of transportation."
Last Friday BPS reported that inflation in the first four months of 2008 stood at 4.01 percent, more than half of the government's full-year target of 6.5 percent.
Moreover, Tengku continued, Adam Air's license revocation earlier this year would also reduce the industry's capacity to serve passengers.
"The closure of Adam Air has caused a cutback in passenger capacity. Logically, as capacity has been reduced, fewer passengers can be served," Tengku said.
Adam Air flew around 6 million passengers in 2007, from a total of 34.863 million passengers carried by the industry.
Tengku's bleak outlook is line with a statement from the International Air Transport Association (IATA), which last Friday said the growth of international air traffic would halt due to soaring fuel costs and global economic slowdown.
International traffic in March grew only by 4 percent from the same month last year, the IATA said as reported by AFP.
