Passengers growth remains steady for Asia Pacific airlines
Preliminary July 2025 traffic figures released today by the Association of Asia Pacific Airlines (AAPA) showed a sustained increase in international passenger demand, fueled by growth in tourism markets. International air cargo demand remained resilient. It is buoyed by stronger export activity ahead of the implementation of US tariffs in early August.
The region’s airlines registered a 7.7% year-on-year increase in international passengers carried, bringing the monthly total to 33.4 million. Measured in revenue passenger kilometers (RPK), demand rose by 8.0%, while available seat capacity expanded by a slightly higher 8.6% year-on-year. This resulted in a 0.4 percentage point decline in the average international passenger load factor to 82.0% for the month.
Commenting on the results, Mr. Subhas Menon, AAPA Director General, explained. “Strong demand growth on routes connecting Northeast Asia and South Asia, together with the expansion of network connections, continued to stimulate traffic.”
“During the first seven months of the year, Asian airlines carried a combined total of 224 million international passengers. This represents an 11% increase compared to the same period in 2024,” he told.
Menon added, “During the same period, air cargo demand grew by 6.5% year-on-year, building on last year’s strong performance. Inventory build-ups ahead of the introduction of tariffs by the U.S., along with the rerouting of shipments and diversification of sourcing. It contributed to the growth in volumes, as businesses prioritized the speed and reliability afforded by air shipments.”
Looking ahead, Menon said, “ The global economic outlook remains broadly positive. Healthy forward booking volumes supporting growth in travel markets. However, the implementation of tariffs is expected to add some uncertainty in air cargo markets. And it could weigh on future demand.”
“On the cost side, the 15% year-to-date decline in jet fuel prices to an average of US$89 per barrel, together with the weaker US Dollar against some regional currencies, is helping to offset cost pressures arising from ongoing supply chain disruptions. Overall, Asian airlines remain focused on disciplined cost management while pursuing new revenue opportunities to support growth and sustain profitability.”
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