Asia-Pacific aviation growth to slow, profits squeezed on easing demand and supply chain issues

ASIA-PACIFIC will continue to soar as the world’s fastest-growing passenger aviation market in 2025, with South-east Asia and India expected to provide most of the thrust.

But this climb still faces headwinds. Air travel demand is expected to come down from post-Covid highs – not least as China, the region’s largest market, continues to lag. This will further suppress airlines’ already declining profits.

Flight supply will also be constrained, which will raise cost without necessarily boosting fares. This is due to continued supply chain issues, including delays in aircraft delivery and maintenance.