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The Routes Asia 2025 conference held in Perth, Western Australia, highlighted the current state of the Asia Pacific airline industry. Subhas Menon, Director General of the Association of Asia Pacific Airlines (AAPA), discussed how the industry's health reflects global economic conditions, noting that when air travel prospers, tourism, trade, and the broader economy tend to do well too.
Menon pointed out that the airline industry's growth has surpassed pre-pandemic levels, achieving a notable 10.5% in 2024 compared to 4.2% in 2019. According to the International Air Transport Association (IATA), air transport in the Asia-Pacific region supported 42 million jobs and contributed $890 billion to the regional GDP in 2024. Additionally, air routes in this region accounted for seven out of the ten busiest international routes.
Despite these positive developments, presenters at the conference highlighted ongoing challenges, particularly concerning supply chain issues. The industry is facing a shortfall in aircraft deliveries expected over the next two years, attributed to shortages in skilled labor, engine issues, spare parts availability, and constraints at Maintenance, Repair and Overhaul (MRO) centers.
