June 30, 2026

Kuala Lumpur, 30th June 2026: Preliminary May 2026 traffic figures released by the Association of Asia Pacific Airlines (AAPA) showed a moderation in international passenger traffic growth. Meanwhile, international air cargo markets continued to expand, supported by stockpiling activity as businesses sought to safeguard against potential supply disruptions and higher costs arising from the conflict in the Middle East. In May, the region’s carriers carried a combined total of 31.7 million international passengers, a 1.1% decline compared to the same month last year. Demand as measured in revenue passenger kilometres (RPK) increased by 1.8% year-on-year, reflecting relatively stronger traffic on longer-haul routes. The regional performance was moderated by a reduction in traffic carried by some airlines, reflecting recent adjustments to international services, while overall available seat capacity remained broadly unchanged for the month. As a result, the average international passenger load factor rose by 1.2 percentage points to 82.0%. International air cargo markets continued to expand, boosted by stockpiling activity and increased shipments of technology products. Demand, as measured in freight tonne kilometres (FTK), grew by 2.5% year-on-year in May, while offered freight capacity expanded by 3.3%, resulting in a 0.5 percentage point decline in the average international freight load factor to 61.6% for the month. Commenting on the results, Wong Hong, Director General of AAPA, said, “International passenger markets remained broadly stable in May, with firm demand on longer-haul routes. Meanwhile, air cargo demand continued to grow, supported by technology-related shipments and precautionary stockpiling activity in response to evolving supply chain and geopolitical risks.” “For the first five months of the year, Asia Pacific airlines carried a combined total of 166.8 million international passengers, representing a 3.9% increase compared to the same period in 2025. International air cargo demand grew 4.7%, supported by the continued need for the timely movement of goods amidst operational disruptions particularly in conflict zones.” Looking ahead, Wong Hong said, “The recent easing of tensions in the Middle East may help to alleviate some concerns over supply chain disruptions and energy costs. While jet fuel prices have eased from recent highs, the average price of US$137 per barrel in the first two weeks of June continues to place pressure on airline operating costs.” He added, “Airlines continue to face uncertainty stemming from geopolitical developments, trade policy shifts and broader economic headwinds. Rising inflationary pressures are also contributing to higher non-fuel operating costs, and may weigh on consumer spending and travel demand in the months ahead.” Mr. Wong Hong concluded, “Overall, operating conditions for carriers remain challenging. Nonetheless, Asia Pacific carriers have responded well to evolving demand patterns, and remain agile in adjusting their networks and capacity deployment to capture growth opportunities and improve profitability, while maintaining strict cost discipline.”

New Delhi, 30th June 2026: Air India will deploy its B777-300ER aircraft featuring upgraded cabin interiors on flights between Delhi and Melbourne, effective 1 July, replacing the existing aircraft. This marks a significant enhancement in premium seat capacity on the route, comfort, and on-board experience, including the introduction of First Class on the route. Configured in a three-class layout, Air India’s upgraded Boeing 777-300ER features 08 First Class suites, 40 fully flat Business Class beds, and 280 Economy Class seats, representing a substantial increase in premium capacity compared to the existing B787-8 on this route, which features 28 Business Class and 241 Economy Class seats. The deployment brings a more consistent and elevated long-haul product to Air India’s Melbourne services, aligned with the airline’s ongoing transformation into a world-class global carrier.