Asia Pacific airlines demonstrated financial resilience in 2024 amid challenges

The Association of Asia Pacific Airlines (AAPA) has released figures relating to the financial performance of carriers in the region for the year 2024.

The report, published on July 9, 2025, shows that airlines in the Asia Pacific region achieved US$7.3 billion in combined net profits in 2024. According to the AAPA, this figure was supported by strong growth in passenger traffic and a marked recovery in cargo volumes.

This amount was reached despite carriers in the region facing a challenging operating environment, due to ongoing supply chain constraints and rising operating costs.

However, robust growth in business and leisure travel was witnessed during 2024, both within the region and globally. This resulted in a 19.9% increase in systemwide passenger demand, in revenue passenger kilometer (RPK) terms. 

Meanwhile, air cargo demand increased to 13.9%, following a surge in e-commerce activity and

disruptions to maritime shipping. This figure was measured in freight tonne kilometres (FTK), following two consecutive years in decline, the AAPA said.

Asia Pacific airlines recorded a 7.7% increase in operating revenue, reaching a combined total of US$213.9 billion in 2024, compared to US$198.6 billion in 2023. 

Aggregated passenger revenue rose by 8.8% to US$170.4 billion, while cargo revenue climbed by 10.3% to US$23.2 billion. Robust traffic growth more than offset the impact of a 9.2% decline in passenger yields to 8.0 US cents per RPK, and a 3.2% decline in air cargo yields to 32.7 US cents per FTK. 

Combined operating expenses rose by 8.4% to US$199.8 billion for the year, due mainly to a 10.1% increase in non-fuel expenditure to US$138.9 billion.

Fuel expenditure, the single largest cost item, rose by 4.8% to US$60.8 billion, in tandem with an increase in flights operated. The increase was partly mitigated by a 13.4% decline in jet fuel prices, to an average of US$98.1 per barrel in 2024. 

Subhas Menon, AAPA Director General, said: “2024 was a year of remarkable resilience for Asia Pacific airlines, as carriers confronted multiple challenges while achieving strong growth in both passenger and cargo demand, along with record passenger load factors. However, airlines were not immune to cost pressures. The marked increase in operating expenses, particularly non-fuel costs, underscored the impact of supply chain constraints.” 

Menon claimed that, despite this, Asia Pacific airlines demonstrated their adaptability, delivering operating margins of 6.6% for the year, just 0.6 percentage points under the 7.2% in 2023.

Menon concluded: “Nevertheless, air passenger demand is expected to remain relatively resilient, amidst continued growth in the region’s economies. In response, airlines are actively refining their business strategies, maintaining cost discipline while pursuing new revenue streams. At the same time, carriers are investing in fleet modernisation, digital innovation, and enhanced service offerings to deliver a high-quality travel experience.” 

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