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Regional airlines association reports robust passenger growth; cites geopolitical risks
June 27th 2025
Traffic figures released by the Association of Asia Pacific Airlines (AAPA) show growth in international passenger demand in May boosted by robust leisure traffic. Read More » The region’s carriers delivered a 10.4% year-on-year increase in international passengers carried, at 31.2 million for the month. Demand rose by 11.3%, exceeding a 9.5% capacity expansion and international passenger load factor improved by 1.3 percentage points to 80.7%. “In the first five months of 2025, Asia-Pacific airlines transported 158 million international passengers; a 12% increase compared with a year ago,” AAPA director general, Subhas Menon, said. “Continued improvements in air connectivity are expected to support growth. Nevertheless, Asia-Pacific carriers face an increasingly challenging operating environment shaped by rising trade and geopolitical tensions, persistent supply chain constraints and more frequent over flight diversions from airspace closures in conflict zones. In addition, fuel prices may remain volatile if the Middle East conflict is prolonged. Air cargo markets are forecast to come under pressure from weakening export orders although shifts in trade routes could mitigate that impact. Overall, the region’s carriers are well placed to adapt to evolving market conditions, supported by strong regional economies that are expanding in tandem with their aviation markets.”
