Asia Pacific airlines stay optimistic on travel demand: AAPA
KUALA LUMPUR: Asia Pacific airlines remain optimistic about travel demand as people continue to travel within the region, although passenger growth has moderated and some travellers may be booking closer to their departure dates.
Asia Pacific airlines maintain optimism regarding travel demand despite a moderate slowdown in passenger growth. Association of Asia Pacific Airlines (AAPA) director general Wong Hong highlighted the significant opportunities within the region, emphasizing the need to overcome challenges such as the shortage of aircraft, components, engines, and skilled workers.
Airlines must keep older aircraft in service for a longer duration, which comes with increased maintenance, repair, and overhaul (MRO) requirements. In the past three to four years, there has been a shortage of planes to meet demand due to component and engine unavailability, along with a shortage of skilled labor. Despite a 1.3% decline in international passengers for Asia Pacific carriers in July 2026 compared to the previous year, revenue passenger kilometres (RPK) rose 1.1% year-on-year, driven by growth on longer-haul routes.
Available seat capacity increased by 0.5%, and the average international passenger load factor rose to 82.4%. For the first seven months of 2026, Asia Pacific airlines carried 225.7 million international passengers, which is 2.5% more than in the same period in 2025. Higher airfares have impacted demand among price-sensitive leisure travelers, especially on shorter-haul routes.
However, jet fuel prices averaged US$143 per barrel, 52% higher than last year due to the Middle East conflict. While bookings are still holding up well, airlines are concerned about the potential impact of inflation and higher living costs on travel spending in the second half of the year. Economic uncertainty may lead some travelers to postpone their bookings, making it difficult for airlines to gauge demand in advance.
Despite these concerns, AAPA member airlines remain optimistic about travel demand, particularly for regional and domestic travel within Asia Pacific. The rising number of middle-class travelers in the region, who travel for various reasons such as tourism, education, and visiting family and friends, is driving demand. Asia and the Asia Pacific region are well-positioned to meet customers' desire and need to travel, with people traveling for various reasons, reinforcing the demand for air travel.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
