The region’s aviation industry is set to continue expanding in 2026, fueled by strong demand and calls for eased regulations, says the Association of Asia Pacific Airlines (AAPA). Airbus forecasts Asia-Pacific as one of the fastest-growing regions for new jet deliveries in the next 20 years.
Despite geopolitical and trade tensions, air travel and cargo remain robust. In the first nine months of 2025, international passenger traffic grew by 10%, and cargo demand increased by 7%. China and India are key drivers, thanks to large populations, rising incomes, and relaxed visa rules, with direct flights resuming after five years.
Intra-Asia travel will continue to dominate revenue, accounting for over 65%. Airline load factors are high—82% for passengers and over 60% for cargo—indicating supply shortages. Many airlines operate aging fleets and are investing more in maintenance.
The AAPA urges governments to support industry growth through investments in local MRO facilities and sensible taxes. The industry also aims for a 5% sustainable aviation fuel blend by 2030.
Airbus projects that passenger traffic will grow at 4.4% annually, requiring around 19,560 aircraft over 20 years. Boeing highlights Southeast Asia as the fastest-growing market, while Embraer predicts a substantial share of regional aircraft deliveries, including smaller jets ideal for regional routes.