Passenger traffic for Asia-Pacific airlines rose 2.7% in July marking the lowest year-on-year growth since 2013.
The latest data from International Air Transport Association (IATA) shows the continuing impact of global trade tensions, and political issues in both Hong Kong and Japan-South Korea.
Together, they are weighing on overall business confidence, the trade group says.
Regional capacity increased by 2.4% and load factor was up only slightly to 82.6%, which is below the global average.
China recorded the strongest domestic performance across the APAC region with an 11.7% YoY rise in July, for a fourth straight month of growth.
IATA cited lower fares and more connections for the rise.
"July’s performance marked a soft start to the peak passenger demand season. Tariffs, trade wars, and uncertainty over Brexit are contributing to a weaker demand environment than we saw in 2018," said IATA CEO Alexandre de Juniac.
