Asia Pacific airline executives expressed optimism for continued air transport growth through 2026, citing resilient regional economies and strong demand for both cargo and passenger services, despite ongoing global trade and geopolitical uncertainties.
That was the prevailing sentiment at the Association of Asia Pacific Airlines' (AAPA) 69th Assembly of Presidents, held in Bangkok, where industry leaders gathered to address key priorities including supply chain resilience, sustainable aviation fuel deployment, and regulatory alignment.
Despite persistent geopolitical and trade tensions, AAPA members registered robust international air traffic performance. Air cargo demand expanded 7%, outpacing global averages, while international passenger traffic for Asia Pacific carriers rose 10% in the first nine months of 2025.
"Asia Pacific airlines continue to demonstrate agility in managing supply chain constraints, with capacity growth keeping pace with demand," said Subhas Menon, director-general at AAPA. "However, further escalation of tariffs could exacerbate these bottlenecks."
Air cargo outlook in 2026: broadly positive
Looking ahead to 2026, AAPA expects international passenger traffic to continue expanding in line with long-term trends, supported by a growing services sector and rising regional connectivity.
"The outlook for air cargo demand remains broadly positive, but subject to uncertainties from global trade policies and elevated costs, including those from new U.S. tariffs and limited SAF availability," said the Kuala Lumpur–based trade association representing major scheduled international airlines across the Asia-Pacific region.
"AAPA airlines are optimistic," Menon said. "Our focus in 2026 will be to advance aviation safety and sustainability across the Asia Pacific region, strengthen supply resilience in collaboration with regulators and suppliers, and promote air transport connectivity."
Meanwhile, at the conclusion of the AAPA 69th Assembly of Presidents, called for stakeholders across the aviation ecosystem to work together to navigate the evolving challenges of the external environment.
"The Assembly reaffirmed the industry's unity and determination to navigate global uncertainty, much as it did during the pandemic," Menon added.
The Assembly also passed several resolutions on aviation sustainability, supply chain challenges, lithium batteries, among others.
On aviation sustainability, the Assembly affirmed a collective target of 5% SAF utilisation by 2030, called on governments to support fuel suppliers by establishing policy and regulations to accelerate SAF production, and adopt ICAO CORSIA-eligible fuel criteria. The resolution further urged States to implement ICAO-approved SAF accounting and registry systems, and support cost-effective production pathways such as co-processing.
The AAPA Assembly also called for targeted investment incentives and regulatory harmonisation to enhance regional MRO and manufacturing capabilities in a bid to strengthen supply chains in the region. It also supported the adoption of circular economy principles, including recycling and reuse of serviceable aircraft materials.
"The Assembly called on regulators to refrain from imposing taxes or charges on international air transport that are not cost-related or consistent with ICAO guidance, cautioning against measures that add an unnecessary financial burden on airlines, or which impede sustainable air transport growth," AAPA said in a statement.
