Overcapacity could force regional airlines to push back incoming aircraft

Singapore

OVERCAPACITY remains a challenge for carriers in this part of the world, which could prompt some airlines to postpone incoming aircraft, according to the head of an airline association.

This year, the International Air Transport Association (Iata) expects US$6.6 billion in collective profits from Asia-Pacific carriers, up from US$5.8 billion last year but still lagging behind North America and Europe. This comes as the region's carriers, which have the biggest share of the global freight market, suffer the impact of weak cargo demand as well as deteriorating yields due to capacity injection from both the low-cost and Gulf carriers.