BANGKOK, 17 November 2025: Leaders of the Association of Asia Pacific Airlines (AAPA) expressed confidence in the region’s continued air transport growth through 2026, supported by resilient economies and strong passenger and cargo demand, at the conclusion of the 69th Assembly of Presidents.
Despite persistent geopolitical and trade tensions, AAPA members registered robust international air traffic performance. International passenger traffic for Asia Pacific carriers rose 10% in the first nine months of 2025, while air cargo demand expanded 7%, outpacing global averages.
“Asia Pacific airlines continue to demonstrate agility in managing supply chain constraints, with capacity growth keeping pace with demand,” said AAPA Director General Subhas Menon: “However, further escalation of tariffs could exacerbate these bottlenecks.”
The assembly brought together airline leaders, manufacturers, and industry partners to address key industry priorities, including supply chain resilience, the deployment of sustainable aviation fuel (SAF), and enhancing workforce resilience.
“Stakeholders across the aviation ecosystem must work together to navigate the evolving challenges of the external environment. The assembly reaffirmed the industry’s unity and determination to navigate global uncertainty, much as it did during the pandemic,” Menon added.
Assembly Resolutions Passed
The Assembly of Presidents unanimously passed several resolutions addressing key industry priorities.
Aviation Sustainability
The assembly affirmed a collective target of 5% SAF utilisation by 2030, called on governments to support fuel suppliers by establishing policy and regulations to accelerate SAF production, and to adopt ICAO CORSIA-eligible fuel criteria. The resolution further urged states to implement ICAO-approved SAF accounting and registry systems, as well as support cost-effective production pathways, such as co-processing.
Supply Chain Strengthening
The assembly called for targeted investment incentives and regulatory harmonisation to enhance regional MRO and manufacturing capabilities. It also supported the adoption of circular economy principles, including recycling and reuse of serviceable aircraft materials.
Aviation Safety
A resolution focused on lithium batteries was passed, calling on regulators to align practices with ICAO guidance for the safe carriage of spare lithium batteries, and to enhance data sharing and public outreach materials on the carriage and usage of lithium batteries by passengers.
Taxes and Charges
The assembly called on regulators to refrain from imposing taxes or charges on international air transport that are not cost-related or consistent with ICAO guidance, cautioning against measures that add an unnecessary financial burden on airlines or which impede sustainable air transport growth.
Outlook for 2026
AAPA expects international passenger traffic to continue expanding in line with long-term trends, supported by a growing services sector and rising regional connectivity. The outlook for air cargo demand remains broadly positive. Still, it is subject to uncertainties stemming from global trade policies and elevated costs, including those resulting from new US tariffs and limited SAF availability.
“AAPA airlines are optimistic,” said Menon. “Our focus in 2026 will be to advance aviation safety and sustainability across the Asia Pacific region, strengthen supply resilience in collaboration with regulators and suppliers, and promote air transport connectivity.”
Association of Asia Pacific Airlines (AAPA)
The AAPA is the trade association for scheduled international airlines based in the Asia Pacific region. The AAPA permanent secretariat is headquartered in Kuala Lumpur, Malaysia, with global representation in Brussels and Washington, DC.
