AAPA reports sustained growth in Asia Pacific travel demand in March but flags Middle East conflict risks

ASIA PACIFIC. International traffic on Asia Pacific airlines climbed +8.5% year-on-year in March to 33.9 million passengers, driven in part by a surge in demand on Asia-Europe routes as geopolitical tensions in the Middle East prompted shifts in travel patterns.

Preliminary October 2025 data released yesterday (28 April) by the Association of Asia Pacific Airlines (AAPA) attributed the growth to sustained healthy travel demand.

Measured in revenue passenger kilometres (RPK), demand rose +11.3%, underscoring the strength of longer-haul travel and outpacing a +1.9% increase in available seat capacity, lifting the average international passenger load factor by 7.4 percentage points to a record 87.6%.

AAPA Director General Wong Hong said, “The aviation industry faced multiple challenges in March, as military conflict in the Middle East led to flight cancellations and a sharp increase in jet fuel prices.

“Asia Pacific airlines responded swiftly by making network adjustments, including adding flights on key Asia-Europe routes, and trimming unprofitable routes in the face of higher fuel and operating costs.”

Hong added, “However, the impact of the Middle East conflict has begun to weigh on what had been an encouraging start to the year.

“Already grappling with high operating costs due to persistent supply chain issues, airlines are now facing additional strain, with jet fuel prices up +80% year-on-year to an average of US$156 per barrel in March, compared to US$87 per barrel a year earlier.

“Fuel remains the single largest cost item for Asia Pacific carriers, accounting for around 30% of total operating expenses.”

Looking ahead, Hong concluded: “The duration of the Middle East conflict is going to add uncertainty to the global economic outlook and air travel demand. Against this backdrop, Asia Pacific airlines continue to maintain vigilance over cost controls while maintaining international connectivity.

“The region’s airlines remain committed to the highest safety standards, and to working closely with governments and industry stakeholders to ensure safe, efficient and sustainable operations.”