GENEVA, Dec 9 — 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 yea, an all-time high for the region.
Yet overcapacity remains a challenge for the region, according to the Geneva-based International Air Transport Association (IATA).
Net profit for 2026 is expected to increase to US$6.6 billion (RM27.15 billion), with revenue passenger kilometres demand projected to grow by 7.3 per cent and available seat kilometres by 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 at its headquarters on Tuesday.
He added that 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.
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, 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,” IATA said.
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.
