Asia Pacific Demand Growth Cools After Post-Pandemic Surge
Asia-Pacific airlines have restored international traffic levels to those seen before the pandemic, but growth has recently stalled. Despite strong demand, supply chain disruptions and operational challenges are limiting expansion and putting pressure on profits.
Current Industry Overview
At the CAPA Airline Leader Summit - Asia held in Singapore on 30 October 2025, industry leaders highlighted that while pre-pandemic international capacity has been regained, further growth remains difficult. Compared to the previous summit in Hong Kong in November 2024, capacity growth has flattened even more this year.
“Asia Pacific capacity had levelled off last year. This year it has flattened even more.”
While some slowdown was expected as the industry neared full recovery, ongoing supply chain issues—including delivery delays and engine shortages—have significantly impacted capacity plans.
Fleet Investment and Profitability
Despite these challenges, Asia Pacific airlines remain optimistic about future expansion, evidenced by 224 confirmed aircraft orders placed in 2025 alone. Airlines continue to be generally profitable, which supports their ongoing fleet investments.
“The good news is that airlines are still generally profitable, supporting their fleet investments.”
However, profits are under increasing pressure, suggesting that the peak of the current profit cycle has likely passed.
Regional Market Insights
This report examines trends across the broad Asia Pacific region and includes detailed analysis of key markets such as Thailand, Mainland China, and Japan.
The CAPA Analysis Report totals 1,411 words and provides further in-depth information on the sector’s status.
Summary: Asia Pacific airlines have restored international traffic to pre-pandemic levels, but growth is constrained by supply chain and operational issues, with profitability facing new challenges despite significant fleet investments.
Would you prefer the summary to be more concise or slightly expanded?