Asian airlines face collapse risks without government aid for high fuel prices
AAPA expects lower levels of profitability, fewer passengers to fly this year
Add BT as a preferred source
[SINGAPORE] Asian airlines need government support to cope with the more than doubling of jet fuel prices that otherwise risks some carriers collapsing like US-based Spirit Airlines, according to the new head of the region’s industry body.
Wong Hong, who took over as director general of the Association of Asia-Pacific Airlines (AAPA) last month, said carriers needed varying levels of help and relief, from direct financial support to being able to cut flight schedules without negative consequences.
“Nobody wants to see any airline getting into a situation like what we’re seeing with Spirit,” Hong said in an interview. “If those things were to happen before governments take action, that would be a pity.”
Spirit shut down operations earlier this month after buckling under the weight of surging fuel prices.
Asian airlines have received mixed, but limited levels of support since the Iran war started in late February. Malaysia has offered extensions and exemptions on a range of airport fees, while India has reduced duties on jet fuel to ease mounting pressures.
Meantime, Hong Kong airlines have not received any support so far, and nor has state-controlled Air New Zealand, despite forecasting a large full-year loss that has forced it to accelerate cost cuts.
Navigate Asia in
a new global order
Get the insights delivered to your inbox.
AAPA’s Hong pointed to airlines receiving government criticism for cutting flights as a further example of a need for more understanding from authorities.
“If governments can engage and better understand,” he said. “The airline ecosystem is very critical. You don’t want any airline to collapse.”
AAPA does expect lower levels of profitability, fewer passengers to fly amid high ticket prices and reduced capacity for 2026.
SEE ALSO
The trade body counts members including Singapore Airlines, Cathay Pacific Airways, Air India and Qantas Airways among its 18 members. Wong said he hopes the association can convince the first mainland Chinese airline to join during his tenure. BLOOMBERG
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Share with us your feedback on BT's products and services
