Asia pacific: Asia Pacific remains the world’s fastest-growing aviation region, with demand continuing to outpace capacity amid supply chain pressures, said the International Air Transport Association (IATA).
According to BERNAMA News Agency, IATA’s regional vice president for Asia Pacific, Sheldon Hee, highlighted the region’s robust fundamentals, supported by strong travel appetite, resilient cargo flows, and improving operational reliability across airlines. For the first nine months of 2025, passenger traffic in Asia Pacific grew 7.7 percent year-on-year, while capacity rose 6.1 percent. Importantly, the region’s revenue passenger kilometres have now exceeded the 2019 levels.
Hee explained that the sustained recovery reflects both structural demand and a competitive market landscape that continues to attract travellers despite thin margins. Globally, the industry is forecast to earn about US$7 profit per passenger (US$1=RM4.13), while for Asia Pacific, the projection is only US$2.60 per passenger. Cargo
flows in Asia Pacific have remained surprisingly resilient despite global tariff changes, with a shift in trade routing, notably stronger flows from Asia to Europe, Europe to the US, and intra-Asia, recording seven consecutive months of growth up to September.
Turning to Malaysia, Hee stated the country is well-positioned for further aviation growth, supported by policy moves that strengthen connectivity and tourism. Aviation in Malaysia contributes about US$14.4 billion in economic value, or 3.6 percent of the GDP. With strengthened bilateral policies, improved visa facilitation, and momentum towards Visit Malaysia 2026, there is potential for sectoral growth.
Hee also addressed concerns over recurring issues with the Aerotrain at Kuala Lumpur International Airport (KLIA), expressing confidence that Malaysia Airports Holdings Bhd is addressing these issues. The Aerotrain service is currently halted daily for rectification works from November 15 to December 15, from 9 pm to 7 am.
Hee emphasized the importa
nce of matching regional growth with sufficient airport and airspace capacity, cautioning against over-taxation or escalating airport charges that could dampen demand in a region where margins are tight. A balanced regulatory approach is essential for maintaining affordable air travel while supporting the broader economic multiplier effects of aviation.
Regarding supply chain issues, Hee noted that while challenges remain, reliability rates have improved across Asia Pacific, with IATA working on new data solutions to help airlines predict patterns and match available MRO capacity more efficiently. Global supply chain constraints are expected to cost the aviation industry an estimated US$11 billion in 2025.
Looking towards 2026, Hee indicated that current trends show no signs of weakening for the Asia-Pacific region, with demand remaining resilient. IATA will officially release its 2026 forecast on December 9.