The Association of Asia Pacific Airlines (AAPA) reported a sustained increase in international passenger demand in July 2025, fueled by growth in tourism markets.
AAPA said international air cargo demand remained resilient, buoyed by stronger export activity ahead of the implementation of US tariffs in early August.
The region’s airlines registered a 7.7 percent year-on-year increase in international passengers carried, bringing the monthly total to 33.4 million. Measured in revenue passenger kilometers (RPK), demand rose by 8.0 percent, while available seat capacity expanded by a slightly higher 8.6 percent year-on-year. This resulted in a 0.4-percentage-point decline in the average international passenger load factor to 82.0 percent for the month.
International air cargo demand, as measured in freight ton kilometers (FTK), recorded a firm 8.6-percent year-on-year increase in July, despite prevailing weakness in global trade flows. With offered freight capacity up by 6.4 percent, the average international freight load factor improved by 1.2 percentage points to 62.0 percent.
“Strong demand growth on routes connecting North East Asia and South Asia, together with the expansion of network connections, continued to stimulate traffic,” said Subhas Menon, AAPA director general.
“During the first seven months of the year, Asian airlines carried a combined total of 224 million international passengers, an 11 percent increase compared to the same period in 2024,” he said.
“During the same period, air cargo demand grew by 6.5 percent year-on-year, building on last year’s strong performance. Inventory build-ups ahead of the introduction of tariffs by the US, along with the rerouting of shipments and diversification of sourcing, contributed to the growth in volumes, as businesses prioritized the speed and reliability afforded by air shipments,” Menon said.
Menon also said the global economic outlook remained broadly positive, with healthy forward booking volumes supporting growth in travel markets. “However, the implementation of tariffs is expected to add some uncertainty in air cargo markets and could weigh on future demand,” he said.
“On the cost side, the 15-percent year-to-date decline in jet fuel prices to an average of US$89 per barrel, together with the weaker US dollar against some regional currencies, is helping to offset cost pressures arising from ongoing supply chain disruptions. Overall, Asian airlines remain focused on disciplined cost management while pursuing new revenue opportunities to support growth and sustain profitability,” he said.
