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Asia Pacific airlines recorded US$12.1 billion in combined net profits in 2025, a 68% increase from the $7.2 billion earned in 2024, driven by firm passenger and cargo demand, while lower fuel prices helped offset cost pressures arising from supply chain disruptions
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Passenger revenue rose by 4.7% to $178.4 billion
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Cargo revenue likewise improved 1.4% to $23.6 billion despite weakness in freight rates
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Amid positive global economic conditions last year, AAPA said the region recorded a 7.7% increase in systemwide passenger demand while systemwide air cargo demand rose by 3.5%
Asia Pacific airlines recorded US$12.1 billion in combined net profits in 2025, a 68% increase from the $7.2 billion earned in 2024, driven by firm passenger and cargo demand, while lower fuel prices helped offset cost pressures arising from supply chain disruptions, according to the Association of Asia Pacific Airlines (AAPA).
For 2025, Asia Pacific airlines recorded $223.7 billion in aggregated operating revenue, a 4.3% increase from US$214.5 billion in 2024, according to preliminary financial performance figures released by AAPA.
Passenger revenue rose by 4.7% to $178.4 billion, driven by healthy growth in passenger traffic, which helped offset the impact of a 2.8% decline in passenger yields to 7.8 US cents per revenue passenger kilometers (RPK).
Cargo revenue likewise improved 1.4% to $23.6 billion, despite weakness in freight rates, as reflected in a 2% fall in cargo yields to 32.1 US cents per freight tonne kilometer (FTK).
Amid positive global economic conditions last year, AAPA said the region recorded a 7.7% increase in systemwide passenger demand, with both long-haul and intra-regional travel remaining buoyant.
Systemwide air cargo demand rose by 3.5%, supported by frontloading activities ahead of tariff hikes, as airlines responded swiftly to evolving trade flows.
Expenditures
Combined operating expenses increased by 4.3% to $209.4 billion for the year, led by a 7.8% jump in non-fuel costs to $151.1 billion.
Supply chain disruptions and inflationary pressures contributed to higher expenditure on staff, leasing, maintenance and airport charges. By contrast, fuel expenditure declined by 3.7% to $58.3 billion, reflecting a 9.5% fall in global jet fuel prices to an average of $88.8 per barrel. As a result, the share of fuel expenditure as a percentage of total operating costs decreased by 2.3 percentage points to 27.8% in 2025.
“Asia Pacific airlines entered 2025 from a position of strength, with robust passenger and cargo demand supporting another year of profitable growth,” AAPA director general Wong Hong said.
Hong said despite headwinds, the region’s carriers maintained operating margins at 6.4%, reflecting continued operational discipline and nimbleness in responding to evolving market conditions.
Outlook
“Although the region’s carriers remain on a solid footing, the challenging operating environment of the past few months shows no sign of abating. The ongoing conflict in the Middle East, together with broader geopolitical tensions, is likely to contribute to continued volatility in oil and currency markets,” Hong said.
“Airlines are facing a persistently high operating cost environment, exacerbated by a sharp increase in jet fuel prices. Consequently, fuel expenditure, the largest single operating cost item for airlines, is expected to rise this year,” he added.
READ: Asia Pacific air cargo demand rises 2.5% in May on stockpiling, tech goods
Looking ahead, Hong said increasing cost pressures may weigh on consumer spending and business sentiment in the coming months.
“Nevertheless, the outlook remains broadly positive, as passenger and air cargo markets are currently holding firm, supported by 4.4%1 growth in the region’s economy this year. Asia Pacific carriers continue to expand their networks and service offerings, while maintaining strict cost controls in a challenging operating environment,” Hong said.
READ: Asia Pacific airlines’ April cargo, passenger demand up despite economic headwinds
