APAC airlines deliver strong 2025 with 390M pax, cargo up 5.6% despite tariffs

Airlines AAPA results 2025
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The Association of Asia Pacific Airlines (AAPA) has reported that airlines in the region carried 390.5 million international passengers throughout 2025, a 9.4% jump from 2024 levels. The growth reflects sustained travel demand across key markets including China, India, Japan, and Vietnam, as the region’s economic recovery continued to drive cross-border movement.

Asia Pacific airlines wrapped up 2025 with strong traffic gains across both passenger and cargo operations, posting solid growth despite ongoing trade tensions and geopolitical uncertainty that continue to shape the global aviation landscape.

Demand rose 11% when measured by revenue passenger kilometers, which factors in both the number of passengers and the distances they traveled. This growth was particularly strong on long-haul routes. Airlines added 10.2% more capacity to meet the demand, and planes flew fuller than ever and the average international passenger load factor hit a record 82.2% for the year, up half a percentage point from 2024.

“Asia Pacific carriers saw a year of strong growth in international passenger traffic, supported by robust demand across key markets in the region, including China, India, Japan and Vietnam,” said Subhas Menon, AAPA Director General. “This resulted in a 9.4% increase in the number of international passengers carried for the year.”

Cargo adapts to shifting trade landscape

The cargo side of the business proved equally resilient, though growth came against a more complicated backdrop. 

International air cargo demand rose 5.6% for the year as measured in freight tonne kilometers, building on the 14.9% surge recorded in 2024. That growth materialized even as new tariffs hit Asian and major global economies, forcing rapid shifts in supply chain patterns.

On the cargo front, Menon noted that airlines adapted quickly to changing conditions. “The region’s carriers demonstrated agility in responding to changes in trade policies and market dynamics, while benefiting from continued growth in e-commerce demand and intermediate goods flows from manufacturing hubs across the region,” he said.

Cargo capacity expanded faster than demand, with a 6.8% increase in available freight space, much of it coming from belly-hold capacity on passenger aircraft as those networks grew. That pushed the average international freight load factor down 0.7 percentage points to 60.3% for the year, suggesting there’s room for further volume growth without major capacity additions.

Cautious optimism amid cost pressures

Looking toward 2026, Menon struck a cautiously optimistic tone. “The broader outlook for air travel remains positive in 2026, supported by steady economic growth and continued network expansion,” he said. “Air cargo demand is also expected to continue growing, but may be weighed down by trade tensions in the global economy.”

The industry isn’t without its challenges. Airlines across the region continue grappling with elevated operating costs driven partly by persistent supply chain disruptions affecting everything from spare parts to new aircraft deliveries. Those pressures are forcing carriers to sharpen their focus on cost discipline while simultaneously investing in digital tools and adjusting route networks to match shifting demand patterns.

“Overall, Asia Pacific airlines remain focused on active cost management, investments in digital capabilities, and network adjustments in response to market changes, as they navigate ongoing uncertainties while delivering sustainable, long-term growth,” Menon said.

The 2025 results show that even with geopolitical tensions and rising costs weighing on the industry, people kept flying and businesses continued to ship  goods by air. That underlying demand proved strong enough to drive steady growth across the Asia Pacific aviation market throughout the year.

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