Asia-Pacific carriers still face looming challenges – including the rise of “protectionist” trade policies and rising costs – even as they continue to see continued growth in travel demand.
The Association of Asia Pacific Airlines (AAPA), in its traffic figures for February, notes that the region’s operators are maintaining a “cautious stance” towards the challenges.
AAPA director general Subhas Menon singles out rising costs – driven partially by constraints in fleet capacity – among the “headwinds” faced by operators.
He adds: “The recent rise in protectionist sentiment also presents potential challenges to trade and broader business activity. In response, Asian airlines are maintaining a cautious stance, closely monitoring evolving operating conditions while actively exploring opportunities in high-potential growth markets.”
Still, Menon says the region’s operators will “continue to benefit from sustained travel demand”, as well as expansion in e-commerce activity, which will drive up air shipment demand.
In February, AAPA data shows the region’s carriers to have flown 30.8 million international passengers, up 5.9% year on year, and on the back of the Lunar New Year holiday period.
Traffic was up 9.2%, outpacing an 8.6% increase in capacity. This led to a 0.4 percentage point rise in load factor to 82.2%.
On the cargo front, AAPA data shows that air cargo demand grew about 2.8% year on year, amid slowing export activity during the Lunar New Year holidays.
