Asian airline margins being squeezed but are faring better than in other regions: AAPA

Airline margins have been "squeezed" in 2011, due to sharply higher fuel prices, according to the Association of Asia Pacific Airlines (AAPA), although the association noted that the region's airlines are faring better than airlines in other regions as they continue to benefit from relatively strong economic growth in developing economies across the region.

AAPA, at the 55th Assembly of Presidents in Seoul earlier this month, stated its member carriers remain "extremely vigilant" about the immediate threats to growth and profitability associated with a potential slowdown in the global economy and fuel prices that have already risen 40% this year. The association also cautioned that while strong domestic spending is ensuring key Asian economies remain resilient, there is increasing concern about the possible impact of further financial instability in Europe and the US moving into 2012.