KUALA LUMPUR, 29 August 2025: Preliminary July 2025 traffic figures released this week by the Association of Asia Pacific Airlines (AAPA) showed a sustained increase in international passenger demand, fuelled by growth in tourism markets. 

International air cargo demand remained resilient, buoyed by more vigorous export activity ahead of the implementation of US tariffs in early August.

The region’s airlines registered a 7.7% year-on-year increase in international passengers carried, bringing the monthly total to 33.4 million. Measured in revenue passenger kilometres (RPK), demand rose by 8%, while available seat capacity expanded by a slightly higher 8.6% year-on-year. This resulted in a 0.4 percentage point decline in the average international passenger load factor to 82.0% for the month.

International air cargo demand, as measured in freight tonne kilometres (FTK), recorded a firm 8.6% year-on-year increase in July, despite prevailing weakness in global trade flows. With offered freight capacity up by 6.4%, the average international freight load factor improved by 1.2 percentage points to 62%.

Commenting on the results, AAPA Director General Subhas Menon said: “Strong demand growth on routes connecting North East Asia and South Asia, together with the expansion of network connections, continued to stimulate traffic. During the first seven months of the year, Asian airlines carried a combined total of 224 million international passengers, an 11% increase compared to the same period in 2024.”

Menon added: “During the same period, air cargo demand grew by 6.5% year-on-year, building on last year’s strong performance. Inventory build-ups ahead of the introduction of tariffs by the US, along with the rerouting of shipments and diversification of sourcing, contributed to the growth in volumes, as businesses prioritised the speed and reliability afforded by air shipments.”

Looking ahead, Menon concluded: “The global economic outlook remains broadly positive, with healthy forward booking volumes supporting growth in travel markets. However, the implementation of tariffs is expected to add some uncertainty in air cargo markets, and could weigh on future demand.”

“On the cost side, the 15% year-to-date decline in jet fuel prices to an average of USD89 per barrel, together with the weaker US Dollar against some regional currencies, is helping to offset cost pressures arising from ongoing supply chain disruptions. Overall, Asian airlines remain focused on disciplined cost management while pursuing new revenue opportunities to support growth and sustain profitability.”

AAPA event

Asia Pacific Aviation Safety Seminar 2025

10-11 September 2025

Hosted by Philippine Airlines

The Association of Asia Pacific Airlines will host the next Asia Pacific Aviation Safety Seminar (APASS) from 10 to 11 September 2025 in Manila, Philippines. The host airline for APASS 2025 is Philippine Airlines.

APASS is the premier regional aviation safety event, designed to create a shared meeting place for the region’s airlines, airports, aircraft manufacturers, insurers, ground handlers, MROs, and suppliers to discuss and stay updated on the latest developments and priorities in aviation safety.

APASS 2025 will feature four key streams: flight safety, cabin safety, engineering & maintenance and turboprop operations. For further information on the seminar, visit: bit.ly/APASS2025

SEOUL, 28 August 2025: Korean Air announced on Monday its intent to purchase 103 next-generation aircraft from Boeing, 19 spare engines from GE Aerospace and CFM International, and a comprehensive engine maintenance programme with GE Aerospace on 25 August.

The total investment is valued at approximately USD50 billion (KRW70 trillion): USD36.2 billion (KRW50 trillion) for Boeing aircraft, USD690 million (KRW1 trillion) for 19 spare engines and an additional USD13 billion (KRW18.2 trillion) for the 20-year engine maintenance service contract.

The agreements were formalised on 25 August at a signing ceremony in Washington D.C, attended by Walter Cho, Chairman and CEO of Korean Air and Hanjin Group; Stephanie Pope, President and CEO of Boeing Commercial Airplanes; and Russell Stokes, President and CEO of Commercial Engines & Services at GE Aerospace.

The aircraft purchase order includes 20 Boeing 777-9s, 25 Boeing 787-10s, 50 Boeing 737-10s, and eight Boeing 777-8F freighters. The aircraft are scheduled for phased delivery through the end of 2030.

This strategic aircraft acquisition is a proactive measure to support Korean Air’s long-term growth following its integration with Asiana Airlines. The airline’s investment plan extends into the mid-to-late 2030s, reflecting delivery delays affecting the global aviation industry.

Korean Air’s fleet strategy will standardise its long-term operations around five highly efficient aircraft families: the Boeing 777, 787, and 737, along with the Airbus A350 and A321neo. This move is expected to ensure a stable capacity growth, achieve economies of scale through fleet simplification, enhance fuel efficiency, reduce carbon emissions, and improve the overall customer experience.

In addition to the new aircraft, Korean Air will acquire 11 spare engines from GE Aerospace and eight from CFM International. The airline will also receive 20 years of engine maintenance service from GE Aerospace for 28 aircraft, representing a significant investment in operational stability and safety.

Korean Air has a long history of fostering close ties between the two countries, beginning with the opening of its first US cargo route (Seoul-Tokyo-Los Angeles) in April 1971 and its first passenger route (Seoul-Tokyo-Honolulu-Los Angeles) in April 1972. This cooperation continues today through its trans-Pacific joint venture with Delta Air Lines.