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Business class airfares could rise in 2026 as Apac passenger traffic continues to expand

Cargo demand expected to be stable but rates will be under pressure as capacity increases

Tay Peck Gek
Published Mon, Jan 5, 2026 · 07:00 AM
    • Analysts expect air freight volume to be stable but there is a possibility of shippers switching to ocean delivery if sea cargo reliability improves and rates dip.
    • Analysts expect air freight volume to be stable but there is a possibility of shippers switching to ocean delivery if sea cargo reliability improves and rates dip. PHOTO: CMG

    [SINGAPORE] Strong growth in consumer demand for air travel in Asia could push up prices for some business class seats this year, analysts say. But higher capacity in the low-cost segment is expected to keep tickets affordable for budget travellers.

    Most markets in Asia-Pacific should cross into 2026 carrying the same firm momentum from the fourth quarter of 2025, notwithstanding worsening geopolitical tensions between China and Japan, said Shukor Yusof, founder of aviation consultancy Endau Analytics.

    Indeed, the Association of Asia Pacific Airlines (AAPA) expects international passenger traffic to the region to continue expanding in 2026 in line with long-term trends, supported by a growing services sector and rising regional connectivity.

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