Preliminary June 2026 traffic figures released by the Association of Asia Pacific Airlines (AAPA) showed a softening in international passenger demand. Weaker traffic in some regional markets reflected capacity reductions and higher airfares following the escalation in fuel prices, even as travel approached the peak mid-year season.
Overall, Asia Pacific airlines carried an aggregate total of 30.5 million international passengers in June, representing a 1.1% decline compared to the same month last year. However, demand in revenue passenger kilometres (RPK) rose by 1.1% year-on-year, underscoring continued resilience in longer-haul travel. Growth in demand outpaced a marginal 0.3% expansion in available seat capacity, resulting in a 0.7 percentage point increase in the average international passenger load factor to 82.6% for the month.
Meanwhile, international air cargo demand remained firm in June, supported in part by robust AI-related semiconductor and hardware shipments. For the month, demand, as measured in freight tonne kilometres (FTK), increased by 3.2% year-on-year, while offered freight capacity edged 0.2% higher, resulting in a 1.8 percentage point increase in the average international freight load factor to 62.6%.
Commenting on the results, Mr. Wong Hong, Director General of AAPA, said, “Passenger traffic moderated in June as higher airfares and capacity adjustments in some regional markets weighed on demand. Even so, international travel has continued to hold up well, with Asia Pacific airlines carrying 192.5 million international passengers during the first half of 2026, 3.2% more than in the corresponding period last year.”
“Meanwhile, international air cargo markets continued to perform well, with demand growing by 7.0% in the first half of the year, supported by continued demand for AI-related semiconductor shipments and other high-value, time-sensitive goods amid evolving trade dynamics.”
Looking ahead, Mr. Wong Hong said, “Airlines continue to face challenging operating conditions, with persistent uncertainty surrounding the Middle East conflict contributing to fuel price volatility and continued pressure on operating costs. These headwinds, together with more moderate business confidence and heightened geopolitical and trade policy uncertainty, may temper growth in travel and air cargo markets in the coming months. Against this backdrop, carriers remain focused on maintaining network flexibility, exercising capacity discipline, and enhancing operational efficiency in response to evolving demand patterns.”
