The Association of Asia Pacific Airlines (AAPA) sees intra-region flights leading growth among Asia-Pacific carriers in 2026, even as it called on governments to “harmonise” regulations and to support the sector’s growth ambitions.
AAPA director general Subhas Menon, who was speaking at the closing of the association’s 69th assembly of presidents, notes that demand remains “very buoyant” in the near term.
Menon says the sector has demonstrated “resilience” amid “persistent” challenges such geopolitics and supply chain issues, with passenger traffic up 10% in the first nine months of the year.
The AAPA says traffic will continue to grow in the new year, supported by “resilient economies and strong passenger and cargo demand”.
Its projections also indicate that in 2026, intra-Asia traffic is expect to see the largest growth, while sectors like North America-Asia are expected to see slower growth.
This is reflective of AAPA’s data comparing traffic growth in August and September, which shows North America-Asia traffic growth slowly down sharply. The “less buoyant” demand “reflects the impact of tariffs and policy changes”, the association notes.
The US-imposed tariffs, which are at risk of being escalated further, “could further exacerbate” supply chain “bottlenecks”, notes Menon.
“Stakeholders across the aviation ecosystem must work together to navigate the evolving challenges of the external environment. The assembly reaffirmed the industry’s unity and determination to navigate global uncertainty,” Menon states.
This year’s assembly of presidents passed four resolutions, covering areas such as sustainability, supply chain and taxation.
It affirmed its “aspirational target” of 5% sustainable aviation fuel use by 2030 – set in 2023 – and called on governments to “establish policy and regulations to accelerate SAF production”.
On supply chain, AAPA member carriers called for “targeted investment incentives” in the MRO and manufacturing sectors.
The assembly also called on regulators to “refrain from imposing taxed or charges on international air transport that are not cost-related or consistent with ICAO guidance”.
Regulators should also “align practices” with global guidelines for the safe carriage of spare lithium batteries, with Menon noting that the lack of “harmonisation” of standards.
He adds: “Airlines are left to their own devices, and each airline is doing their own thing, which is very confusing for passengers.”
This year’s AAPA assembly of presidents was held in Bangkok on 15 November. This year’s edition sees a bumper crop of new members, including returnees Qantas and Air New Zealand, as well as the AAPA’s first low-cost carrier member Lion Group.
