Recent passenger data from trade group the Association of Asia Pacific Airlines (AAPA) found international air traffic in the region remains strong.
There was 6.5% year-on-year growth in the number of international passengers during October although cargo revenues continue to weaken.
Passenger load factor was up by 1.6 percentage points to 76.9% for the month but the premium travel market is beginning to slow down, Andrew Herdman, AAPA director general said.
"Robust demand for leisure related travel boosted air passenger markets in October. However, premium travel demand is beginning to show some signs of moderation, possibly a reflection of the slowdown in emerging market economies," he said.
"Overall, Asian airlines carried 229 million international passengers during the first ten months of the year, 8.2% more than in the same period last year."
"We’re seeing continuing robust growth in passenger demand, boosted by the prevalence of competitively priced travel options as a result of lower oil prices. The challenge for Asian carriers is how to capture that growth in passenger demand in a highly competitive market, whilst achieving improvements in still thin margins. On the other hand, air cargo markets are expected to remain soft, given weak global trade conditions," Herdman added.
During the AAPA Assembly of Presidents held in Bali last month, Herdman again highlighted member airlines’ thin margins due to the increasing tax burdens imposed by governments.
‘Unjustified or discriminatory taxes’ also undermines global tourism and its wider economic benefits, the AAPA said.
