Asia Pacific Demand Growth Cools After Post-Pandemic Surge
Asia-Pacific airlines have restored international traffic to pre-pandemic levels, but growth has slowed due to ongoing supply chain issues. Despite strong demand, profits are under increasing pressure.
This trend was highlighted during the CAPA Airline Leader Summit - Asia, held in Singapore on 30 October 2025. The presentation noted that while the airline industry has regained pre-pandemic international capacity, further growth remains challenging.
At the 2024 CAPA event in Hong Kong, capacity had already plateaued, and this year the flattening has intensified. Some slowdown in growth was expected as recovery neared completion, but additional challenges are impacting capacity expansion:
- Supply chain disruptions
- Delivery delays
- Engine shortages
Despite these operational hurdles, airlines remain optimistic, placing 224 firm aircraft orders in 2025. Profitability supports ongoing fleet investments, although profit margins are tightening, suggesting the peak of the current profit cycle may have passed.
The analysis covers trends across the broader Asia Pacific region and includes detailed looks at markets such as Thailand, Mainland China, and Japan.
Asia Pacific airlines have demonstrated confidence in future growth, placing 224 firm aircraft orders in 2025 alone.
It is likely that we are past the peak of the latest profit cycle.
Author's summary: Asia Pacific airlines have rebounded to pre-pandemic capacity but face growth limits from supply issues and profit pressures despite robust demand.