Airlines in Asia-Pacific see turbulence ahead

MANILA, Philippines — The fuel price hike amid the political tension in the Middle East is posing a challenge to the aviation sector, which has been seeing robust growth, according to the Association of Asia Pacific Airlines (AAPA).

AAPA director general Subhas Menon, in a statement, said that Asia-Pacific airlines must brace for the impact of the Israel-Iran conflict on their business.

“Asia-Pacific carriers face an increasingly challenging operating environment, shaped by rising trade and geopolitical tensions, persistent supply chain constraints, and more frequent overflight diversions due to airspace closures in conflict zones,” Menon said.

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“In addition, fuel prices may remain volatile if the Middle East conflict prolongs,” he added.

The global average jet fuel price has so far risen by 12.9 percent to $96.97 per barrel, according to the latest jet fuel price monitor report by the International Air Transport Association.

More local destinations

Still, Menon said that the “continued improvements in air connectivity are expected to support growth in travel demand.”

In the Philippines, for example, airlines have been opening more routes to local and international destinations.

More foreign airlines have also been setting up their operations in the country, offering passengers long-haul flights.

By Oct. 1, Filipino travelers will be able to fly directly to India with the launch of nonstop flights between Manila and Delhi by Air India. The direct flights, which are seen to boost tourism and trade, will be available five times a week.

Air Canada launched its inaugural Manila-Vancouver flights in April.

Last year, United Airlines launched its San Francisco-Narita-Cebu flights while Qantas Airways started servicing the Brisbane-Manila route. Air France also began operating the highly anticipated Manila-Paris flights last year.

In January to May, Asia- Pacific airlines saw passenger volume grow by 11.8 percent to nearly 158 million.

“Air travel demand in the Asia-Pacific region continued to see sustained growth, on the back of strong leisure and business traffic,” Menon said.

(2025/06/30-02:08)