Asia Pacific carriers stay upbeat despite modest passenger growth and supply constraints
Airlines in the Asia Pacific region say demand remains solid, even as passenger numbers dip slightly and shortages of aircraft and staff persist.
The Association of Asia Pacific Airlines' director general, Wong Hong, said the region still offers strong growth potential, but airlines must overcome supply bottlenecks. A shortage of aircraft, spare parts, engines and qualified workers forces carriers to extend the life of older planes, increasing maintenance and overhaul demands. Preliminary July figures indicated a 1.3% decline in international passenger numbers year-on-year, yet revenue passenger kilometres grew 1.1% thanks to longer-haul routes, while seat capacity rose 0.5% and the load factor improved to 82.4%.
For the first seven months of 2026, international traffic was up 2.5% compared with the same period in 2025. Jet fuel averaged US$143 per barrel, 52% higher than the previous year, and higher fares are dampening demand on short routes. Hong warned that inflation and cost-of-living pressures could affect travel spending later in the year, but he remains confident that rising middle-class and Gen-Z travellers will sustain demand.
