AAPA director general: 'Underlying demand conditions remain supportive'

Association of Asia Pacific Airlines (AAPA) reported (01-Sep-2026) traffic figures showed "further moderation" in international passenger markets in Jul-2026 as higher airfares "continued to weigh on demand among price-sensitive leisure travellers". AAPA stated regional travel was also affected by further rationalisation of network operations in the industry, in response to "persistently elevated jet fuel prices and airspace restrictions associated with the Middle East conflict". Asia Pacific airlines recorded a 1.3% year-on-year decline in the number of international passengers to 32.4 million. Demand in RPKs remained "firm", increasing by 1.1% and "buoyed by encouraging growth on longer haul routes". AAPA director general Wong Hong stated: "Higher air fares weighed on demand, particularly on shorter-haul routes, with the impact more pronounced in the price-sensitive leisure sector". Mr Hong continued: "Underlying demand conditions remain supportive, underpinned by continued growth in regional economies, though momentum has moderated". He added: "Persistently high fuel prices, together with the weakening of several Asian currencies against the US dollar, continue to add to airline cost pressures, with rising inflationary pressures also weighing on demand". Mr Hong concluded: "Against this backdrop, carriers continue to align capacity with demand, while retaining the flexibility to respond to changing market conditions". [more - original PR]