Southeast Asia aviation 2018 outlook: more rapid growth, low profit margins and intense competition
Southeast Asia is a region of rapid growth and huge potential. Passenger traffic in Southeast Asia grew by approximately 10% in 2017, when at least half of the region’s 10 countries recorded double-digit growth.
However, it is also a region of intensifying competition, and several markets suffer from overcapacity. Yields have been steadily declining for the past few years, resulting in very low profit margins, despite low fuel prices and relatively high load factors.
Yields are now showing some signs of stabilisation, but are not likely to increase sufficiently to offset higher fuel prices. In 2018 it will be another year of good growth and meagre profits for the Southeast Asian airline sector.
Become a CAPA Member to access Analysis Reports
Our Analysis Reports are only available to CAPA Members. CAPA Membership provides exclusive access to in-depth insights on the latest developments in the aviation and travel industry, developed by our team of dedicated analysts located in Europe, North America, Asia and Australia.
Each report offers a fresh perspective on the latest industry trends and is available online or via the CAPA mobile app, with customisable alerts to help you stay informed and identify new business opportunities.
CAPA Membership also provides access to our full suite of tools, including a tailored selection of more than 400 News Briefs every weekday and comprehensive data and analysis on thousands of companies around the world.