Asia Pacific airlines recorded combined net profits of $12.1 billion in 2025, the Association of Asia Pacific Airlines (AAPA) said today, as firm passenger and cargo demand and lower fuel prices offset rising non-fuel costs driven by ongoing supply chain disruption.

Aggregated operating revenue across the region’s carriers rose 4.3% to $223.7 billion, up from $214.5 billion in 2024. Passenger revenue increased 4.7% to $178.4 billion on the back of strong traffic growth, even as passenger yields fell 2.8% to 7.8 US cents per revenue passenger kilometre (RPK). Cargo revenue rose 1.4% to $23.6 billion, despite a 2% decline in cargo yields to 32.1 US cents per freight tonne kilometre (FTK), amid soft freight rates.

Systemwide passenger demand, measured in RPK, climbed 7.7% for the year, with both long-haul and intra-regional travel remaining buoyant amid favourable global economic conditions. Air cargo demand, measured in FTK, grew 3.5%, supported by shippers front-loading volumes ahead of tariff increases.

Combined operating expenses rose 4.3% to $209.4 billion. Non-fuel costs increased 7.8% to $151.1 billion, with airlines facing higher staff, leasing, maintenance and airport charges linked to persistent supply chain disruption and inflation. Fuel expenditure fell 3.7% to $58.3 billion, reflecting a 9.5% drop in average global jet fuel prices to $88.8 per barrel. Fuel’s share of total operating costs declined by 2.3 percentage points to 27.8%.

AAPA director general Wong Hong said Asia Pacific airlines entered 2025 “from a position of strength, with robust passenger and cargo demand supporting another year of profitable growth.” Wong noted that operating margins held at 6.4% despite cost pressure, reflecting “continued operational discipline and nimbleness in responding to evolving market conditions.”

Wong warned that the operating environment remains volatile, citing the conflict in the Middle East and broader geopolitical tensions as factors likely to sustain volatility in oil and currency markets. He added that fuel expenditure, airlines’ largest single operating cost item, is expected to rise this year following a sharp increase in jet fuel prices.

Looking ahead, Wong said cost pressures could weigh on consumer spending and business sentiment, though demand is expected to hold firm, supported by projected regional economic growth of 4.4% this year.