Middle East carriers fight back

KUALA LUMPUR: Malaysia and other Asia-Pacific aviation markets could face increased competition from Middle Eastern airlines as they aim to regain passengers lost due to disruptions earlier this year. Association of Asia Pacific Airlines (AAPA) director-general Wong Hong stated that Middle Eastern carriers will not back down without a fight and will make efforts to win back customers and recover the business they lost during the past four months.

Wong acknowledged that some shift in passenger demand may occur, but he is confident that Middle Eastern airlines will strive to regain their market share. He emphasized that whether the traffic returns to pre-disruption levels remains a question. Since tensions escalated in the Middle East, several Asia-Pacific airlines have observed an uptick in transit traffic, with passengers opting for alternative routes through Asian hubs.

For instance, Cathay Pacific reported in March that Middle East disruptions had redirected passenger demand towards other aviation hubs, leading to more transits through Hong Kong. In response, the airline expanded its flights and increased capacity to Europe to cater to travelers seeking alternative routes.

Regarding airfares, Wong expressed uncertainty about whether prices will rise or fall, as they are influenced by market conditions and how aggressively airlines compete for passengers. He emphasized that airlines need to be pragmatic and consider what the market can afford and customers' willingness to pay.

Wong also highlighted that airlines are closely monitoring fuel prices as the industry nears the end of the year. He expressed hopes that regional airlines will witness a return to normal operations, with fuel prices stabilizing at more manageable levels. If demand persists despite inflationary risks, he believes that airlines will resume business as usual in 2027.