The outlook for airlines in the region is uncertain due to geopolitical developments and changes in trade policies, says the Association of Asia Pacific Airlines (AAPA).
Preliminary Aug 2026 traffic figures show that international passenger traffic remained soft, as some airlines further cut capacity amid persistently elevated jet fuel prices and airspace restrictions associated with the Middle East conflict.
Higher airfares also weighed on regional demand, while long-haul traffic remained relatively resilient, including on Asia to Europe routes.
Overall, Asia Pacific airlines carried 33.5 million international passengers in August, 0.6% fewer than a year earlier. Passenger demand, measured in revenue passenger kilometres (RPK), rose by 1.8% year-on-year. Capacity, measured in available seat kilometres, increased by 1.5%, lifting the average international passenger load factor by 0.2 percentage points to 83.2%. AAPA director general Wong Hong says traffic growth has moderated in recent months, but the picture remains broadly positive. Asia Pacific airlines carried 259.3 million international passengers in the first eight months of the year, 2.1% more than in the same period in 2025.
. . . Uneven Growth
Wong says despite the year-to-date growth in traffic, the operating environment remains challenging.
Elevated jet fuel prices, airspace restrictions and weaker Asian currencies are raising costs, while higher fares weigh on price-sensitive travellers. These factors continue to affect profitability, with outcomes varying across individual airlines.
“Regional economic growth and trade activity should continue to support demand for air travel and cargo, although growth is likely to remain uneven across markets,” adds Wong.
