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Regional airlines association points to “further moderation” of international passenger traffic in July
September 3rd 2026
Preliminary July 2026 traffic figures released today by the Association of Asia Pacific Airlines (AAPA) showed further moderation in international passenger markets, the regional association said. Read More » “Higher air fares continued to weigh on demand among price-sensitive leisure travelers. Regional travel was also affected by further rationalization of network operations in the industry, in response to persistently elevated jet fuel prices and airspace restrictions associated with the Middle East conflict,” it explained.
Asia Pacific airlines recorded a 1.3% decline in the number of international passengers carried to a combined total of 32.4 million in July. Demand (RPK) increased by 1.1% year-on-year, buoyed by encouraging growth on longer-haul routes. Capacity (ASK) increased 0.5%. International passenger load factor increased 0.5 ppt to 82.4%. “Asian airlines carried a combined 225.7 million international passengers in the first seven months of the year, 2.5% more than in the corresponding period last year. Longer-haul markets in particular saw encouraging growth, supporting the overall increase in passenger demand. At the same time, July saw jet fuel prices averaging US$143 per barrel, a 52% jump compared with the same month last year, driven by the conflict in the Middle East. Consequently, higher air fares weighed on demand, particularly on shorter-haul routes, with the impact more pronounced in the price-sensitive leisure sector,” Wong Hong, Director General of AAPA, said.
International air cargo demand (FTK), grew by 1.1% year-on-year, while offered freight capacity expanded by 1.8%. The average international freight load factor declined by 0.4 ppt to 61.3% for the month. “The cargo business segment continued to benefit from growth in export activity from major regional manufacturing hubs. Overall, international air cargo demand rose by a robust 6.2% year-on-year during the first seven months of the year, although the pace of growth has become more moderate in recent months,” Mr. Wong Hong commented.
“Underlying demand conditions remain supportive, underpinned by continued growth in regional economies, though momentum has moderated. Persistently high fuel prices, together with the weakening of several Asian currencies against the US dollar, continue to add to airline cost pressures, with rising inflationary pressures also weighing on demand. Against this backdrop, carriers continue to align capacity with demand, while retaining the flexibility to respond to changing market conditions,” he added.
