Asia-Pacific carriers see soft demand but positive outlook, AAPA says

International passenger numbers at Asia-Pacific carriers fell 0.6% year-on-year in August to 33.5 million travellers, according to the Association of Asia Pacific Airlines. Traffic rose about 1.8%, ahead of a 1.5% increase in capacity.

The association calls the regional outlook broadly positive but expects growth to be uneven. Demand has been soft, and carriers have trimmed capacity to offset higher fuel prices. AAPA says higher airfares have weighed on regional demand, while long-haul traffic has held up relatively well, mirroring what the group has seen in recent months.

Director general Wong Hong says traffic growth has moderated, though the picture remains broadly positive. He adds that regional economic growth and trade activity should keep supporting demand.

Even so, Wong calls the operating environment challenging. Costs are rising, and higher fares are affecting price-sensitive travellers. He says those factors continue to affect profitability, with results differing between individual airlines.

Cargo demand rose 1.1% year-on-year, against a 1.6% increase in capacity. AAPA attributes the gain to rising export activity and brisk demand for goods tied to AI.