AAPA director general: 'Airlines are doing reasonably well, under the circumstances'
Association of Asia Pacific Airlines (AAPA) director general Subhas Menon, speaking at Routes Asia 2025, stated (25-Mar-2025) the Asia Pacific airline sector has fully recovered from the COVID-19 pandemic on a demand basis, adding: "Airlines are doing reasonably well, under the circumstances". Mr Menon noted that Asia Pacific was the leading region for traffic growth in 2024 and the region is home to seven of the top 10 busiest international routes. He said the region's airlines "could do much better" if more aircraft and engines were delivered on time. Mr Menon said Asia Pacific airline earnings are resilient, but "margins are not anything to shout about". Mr Menon also noted that "the airline industry is becoming more efficient", despite supply chain constraints. He said "efficiency has significantly improved" for Asia Pacific carriers, citing high load factors.
Background ✨
The Asia Pacific airline sector experienced substantial growth in 2024, supported by increased flight frequencies and network expansions, leading to a 30.5% year-on-year increase in international passenger numbers to 365 million1. Despite robust travel demand and increased capacity, the region faced ongoing supply chain issues, including delays in aircraft deliveries, which constrained growth potential2 1. Rising costs, such as labour and maintenance, also presented challenges, prompting airlines to focus on cost management and supplier commitments to address these issues1.