Asia Pacific airlines recorded strong growth in 2024, with both international passenger and cargo markets experiencing higher demand. The latest data from the Association of Asia Pacific Airlines (AAPA) shows that increased flight frequencies and expanded networks played a key role in boosting passenger numbers. Meanwhile, disruptions in maritime shipping and a rise in e-commerce contributed to a surge in air cargo volumes for airlines in the region.
A total of 365 million international passengers flew with airlines in Asia Pacific in 2024, a 30.5% increase from the previous year. Demand, measured in revenue passenger kilometers (RPK), grew by 28.0%, reflecting strength in regional routes. With available seat capacity expanding by 26.6%, the international passenger load factor rose to 81.6%, an improvement of 0.9 percentage points.
Air Cargo Market Recovers After Two Years
The international air cargo market rebounded in 2024 following two years of decline. Freight tonne kilometers (FTK), which measure cargo demand, increased by 14.9% for the year. This slightly outpaced the 14.6% growth in freight capacity seen by Asia Pacific airlines, bringing the average international freight load factor up to 61.0%.
Commenting on the strong performance of airlines in the region, AAPA Director General Subhas Menon said, “2024 was a strong year for Asia Pacific airlines. The post-pandemic recovery on North East Asia routes, helped by the relaxation of visa policies, together with overall healthy demand across the region, drove growth in both leisure and business travel markets. This resulted in a 30.5% increase in the number of international passengers carried for the year, reaching a total of 365 million. Consequently, the region’s carriers achieved a record-high international passenger load factor of 81.6% in 2024, amidst capacity constraints stemming from ongoing supply chain shortages and delays in aircraft deliveries.”
Menon also highlighted the positive shift in air cargo demand for airlines of the Asia Pacific region. “Despite weakness in the global manufacturing sector, Asia Pacific carriers saw significant growth in their air cargo business, driven by a surge in e-commerce sales and the region’s role as a manufacturing hub, particularly in China. Persistent disruptions in maritime shipping also encouraged a modal shift in transport, contributing to the 15% growth in international air cargo demand for the year.”
Airlines Prepare for 2025 Amid Operational Challenges
Looking ahead, Menon said that while air travel demand remains strong, growth is expected to moderate in 2025. “The outlook for air travel markets in 2025 remains broadly positive, although growth rates are expected to moderate further. However, airlines continue to face challenges, including rising labour, maintenance, and aircraft leasing costs, as well as operational pressures due to ongoing delays in aircraft deliveries. To navigate these challenges, airlines are focusing on active cost management and seeking the commitment of equipment suppliers to address supply chain problems, while continuing to invest in growth opportunities.”
Despite these challenges, Asia Pacific airlines ended 2024 with strong performance in both passenger and cargo markets. The industry remains focused on managing costs, overcoming supply chain issues, and sustaining demand in the coming year.
