Asia Pacific airlines experienced a 1.3% decline in international passenger numbers in July 2026, according to preliminary figures from the Association of Asia Pacific Airlines (AAPA).

The drop is attributed to higher air fares affecting leisure travellers and network adjustments due to elevated jet fuel prices and Middle East airspace restrictions. Despite this, demand measured in revenue passenger kilometres rose by 1.1%, driven by growth on longer-haul routes.

The available seat capacity increased by 0.5%, resulting in a slight rise in the average international passenger load factor to 82.4%.

AAPA Director General Wong Hong noted that Asian airlines carried 225.7 million international passengers in the first seven months of 2026, marking a 2.5% increase from the previous year. He highlighted that longer-haul markets showed encouraging growth, supporting overall passenger demand.

In contrast, the air cargo sector continued to expand, albeit at a slower pace. International air cargo demand, measured in freight tonne kilometres, grew by 1.1% year-on-year, whilst freight capacity rose by 1.8%. This led to a 0.4 percentage point decrease in the average international freight load factor to 61.3%. Wong Hong remarked that the cargo segment benefited from robust export activity from regional manufacturing hubs, with a 6.2% year-on-year increase in demand over the first seven months.

Looking forward, Wong Hong expressed concerns over persistently high fuel prices and the weakening of several Asian currencies against the US dollar, which continue to exert cost pressures on airlines. He emphasised the importance of aligning capacity with demand whilst maintaining flexibility to adapt to changing market conditions.

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