The Asia-Pacific Aviation Association (AAPA) warns that passenger and cargo demand could be “potentially” softened in the short term as a result of uncertainty caused by the Trump administration's economic policies.
AAPA Director Subhas Menon says the US decision to tax and then suspend has led to “unsteady activity” in the global stock market.
Still, the association says that airlines in the Asia-Pacific region continue to grow in the international passenger market, with over 31 million passengers increasing by 6.9% year-on-year.
The RPK increased by 9% that month, but increased by a 14% increase in capacity, reducing the passenger load factor of 1.4 points to 80.8%.
Menon points out that “solid” growth has been brought about behind “an expansion of international routes, liberalised visa regimes and resilient economic activity across the region.”
On the freight front, operators in the Asia-Pacific region saw a 5.7% increase in tons of freight transport and a 4.7% increase in capacity.
“While the forecast for the US tariff announcement has encouraged front-loading of air transport on selected routes, robust e-commerce activities have continued to support overall demand,” Menon said.
The AAPA outlook is as Asia-Pacific operators are adopting an on-the-scene approach to tariff policy. Cathay, for example, says it is taking “active measures” to prevent any impact, but warns that freight demand is likely to soften in the coming months.
