Preliminary May figures released today by the Association of Asia Pacific Airlines (AAPA) reveal that Asia-Pacific international passenger traffic edged down by 1.1% year-on-year, with regional carriers handling a combined total of 31.7 million passengers. This moderated performance reflected tactical service adjustments by some airlines, though overall available seat capacity remained stable.

Demand as measured in revenue passenger kilometres (RPK) increased by 1.8% year-on-year, reflecting relatively stronger traffic on longer-haul routes, which lifted the average international passenger load factor by 1.2 percentage points to 82.0%.

For the first five months of the year, Asia-Pacific airlines carried a combined total of 166.8 million international passengers, representing a 3.9% increase compared to the same period in 2025.

Operating costs for regional operators remain under pressure due to elevated fuel and non-fuel expenses. Jet fuel prices have eased from recent highs, but the average price of $137 per barrel in the first two weeks of June continues to impact airline margins. Rising inflationary pressures are also contributing to higher non-fuel operating costs, which may weigh on consumer spending and travel demand in the months ahead.

In the cargo sector, international air freight markets continued to expand, supported by stockpiling activity as businesses sought to safeguard against potential supply disruptions and higher costs arising from the conflict in the Middle East. Demand, as measured in freight tonne kilometres (FTK), grew by 2.5% year-on-year in May, driven by technology-related shipments and precautionary stockpiling in response to evolving supply chain and geopolitical risks. For the first five months of the year, international air cargo demand grew 4.7%, supported by the continued need for the timely movement of goods amidst operational disruptions in conflict zones.

Offered freight capacity expanded by 3.3% in May, outstripping the growth in demand. As a result, the average international freight load factor experienced a 0.5 percentage point decline to 61.6% for the month.

Commenting on the results, Wong Hong, director general of AAPA, said, “International passenger markets remained broadly stable in May, with firm demand on longer-haul routes. Meanwhile, air cargo demand continued to grow, supported by technology-related shipments and precautionary stockpiling activity in response to evolving supply chain and geopolitical risks.”

“For the first five months of the year, Asia Pacific airlines carried a combined total of 166.8 million international passengers, representing a 3.9% increase compared to the same period in 2025. International air cargo demand grew 4.7%, supported by the continued need for the timely movement of goods amidst operational disruptions particularly in conflict zones.

“The recent easing of tensions in the Middle East may help to alleviate some concerns over supply chain disruptions and energy costs. While jet fuel prices have eased from recent highs, the average price of US$137 per barrel in the first two weeks of June continues to place pressure on airline operating costs.”

Overall, operating conditions for carriers remain challenging. Nonetheless, Asia Pacific carriers have responded well to evolving demand patterns, and remain agile in adjusting their networks and capacity deployment to capture growth opportunities and improve profitability, while maintaining strict cost discipline.”