AAPA: Outlook for traffic growth remains 'broadly positive' despite challenges

Association of Asia Pacific Airlines (AAPA) reported (28-Sep-2026) international passenger traffic in Aug-2026 "remained soft, as some airlines further rationalised capacity amid persistently elevated jet fuel prices, and airspace restrictions associated with the Middle East conflict". AAPA noted higher air fares "also weighed on regional demand, while long haul traffic remained relatively resilient, including on Asia-Europe routes". Air cargo markets "continued to benefit from rising export activity and brisk demand for AI-related goods, although e-commerce shipments to Europe showed some weakness following the introduction of charges on small parcels". Director general Wong Hong stated: "Traffic growth has moderated in recent months, but the picture remains broadly positive", noting: "Despite the year-to-date growth in traffic, the operating environment remains challenging". Mr Hong continued: "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". Mr Hong forecast 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". He added: "Geopolitical developments and changes in trade policies add some uncertainty to the outlook for the remainder of the year". [more - original PR]