Asia-Pacific To Remain Largest Contributor To Global Air Traffic Growth Next Year - IATA

From Kisho Kumari Sucedaram

GENEVA, Dec 9 (Bernama) -- The Asia-Pacific region is expected to remain the largest contributor to global traffic growth, with lead factors projected to reach 84.4 per cent next year - an all-time high for the region.

However, overcapacity continues to be a challenge for the region, the Geneva-based International Air Transport Association (IATA) said.

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The IATA said net profit for 2026 is expected to increase to US$6.6 billion (RM27.15 billion) with revenue passenger kilometres demand to grow by 7.3 per cent and available seat kilometres projected at 7.1 per cent.

“Passenger demand remains robust with China and India leading regional expansion, driven by rising tourism activity and growing middle classes,” IATA director general Willie Walsh said during the association’s Global Media Day held at its headquarters here on Tuesday.

He also said easing visa requirements for Chinese group tours to South Korea and for visitors to China are expected to stimulate short-term inbound demand, particularly during peak holiday periods. 

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On July 16, Malaysia and China extended their mutual visa-free agreement, effective on July 17 for short- term visits totalling up to 90 days within a 180-day period. 

Nevertheless, IATA said overcapacity remains a challenge amid a slower recovery of international traffic, putting pressure on yields. 

“Deflationary pressures are also driving yields lower in China.

“While Chinese exports to the United States have declined, substitution effects have helped offset the impact of trade tensions as Chinese goods have found alternative markets,” it added. 

Revenue passenger kilometres or revenue passenger miles is an airline industry metric that shows the number of kilometres travelled by paying passengers while available seat kilometres show the total number of passenger kilometres that could be generated in order to determine the amount of revenue that comes in compared to the maximum amount.

-- BERNAMA