AAPA: Rising fuel prices are placing financial strain on Asia Pacific carriers

The Association of Asia Pacific Airlines (AAPA) has called on governments across the region to provide timely, practical support to airlines facing sharply higher fuel prices and mounting operational hurdles. The call was made at the close of the Association’s 70th Assembly of Presidents, hosted by Malaysia Airlines in Kuala Lumpur. Together, these pressures are driving up operating costs and adding uncertainty to airline planning. They are weighing on an industry that plays a vital role in supporting economic activity, trade, tourism and regional connectivity. AAPA Director General Wong Hong said, “The operating environment for Asia Pacific airlines has changed markedly since the last Assembly of Presidents 12 months ago. Carriers have continued to demonstrate resilience and adaptability. However, the sharp escalation in fuel prices, coupled with other cost pressures and operational uncertainties, has created a far more demanding environment. Governments must recognise these pressures and work constructively with the industry to provide support that safeguards the long-term viability of air transport across the region.” Asia-Pacific airlines brace for prolonged fuel pain as hedging cover thins High airfares could become the new normal, according to this industry insider Green fuel affordability remains key hurdle for aviation More widely, AAPA is calling for a more coordinated and collaborative approach among governments, regulators and industry stakeholders to address shared issues and strengthen the long-term resilience and competitiveness of Asia Pacific aviation. The Assembly adopted four resolutions covering aviation sustainability, passenger rights, cabin safety and aviation security: Aviation Sustainability: AAPA reaffirmed its target of 5% Sustainable Aviation Fuel (SAF) utilisation by 2030, in support of the International Civil Aviation Organization’s (ICAO) long-term aspirational goal of net-zero carbon emissions by 2050. The Association called on governments to take a leadership role by adopting eight key policy principles as the basis for national and regional SAF policies. The principles promote an ecosystem approach across the whole SAF value chain, and long-term policy clarity tailored to national readiness. They encourage competition, discourage market concentration and call for a level playing field for all airlines. They also favour a technology-neutral, performance-based approach that rewards greater greenhouse gas (GHG) emissions reductions, and clear certification requirements, ideally requiring fuel certified under the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). Finally, they call for global and domestic policy harmonisation, and flexibility for airlines in procuring SAF, including formal acceptance of book-and-claim within a region. Passenger Rights: With passenger rights regulations proliferating across the Asia Pacific region and beyond, AAPA called on governments to apply a set of core principles when developing or reviewing such regulation. The principles seek a balance between passenger protection and industry competitiveness, without compromising safety and security. They cover clear information and consumer education before travel, regular updates and appropriate care during disruptions, and efficient complaints handling afterwards. They also stress that liability should recognise the shared responsibilities of aviation stakeholders, so that airlines do not bear a disproportionate burden. All parties should collaborate and plan together for disruptions, and in the provision of non-discriminatory access to air transport. Cabin Safety: AAPA called for stronger collaboration among governments, regulators and airlines to address cabin safety issues, including lithium battery risks, unruly passengers, medical emergencies, evacuations and crew training. It also encouraged greater regional cooperation among regulators, including information sharing and support for capacity building. Aviation Security: AAPA resolved to promote greater regional collaboration to integrate human factors into aviation security, focusing on training, workload management, security culture and organisational learning. It also encouraged the sharing of regional best practices through ICAO’s Asia and Pacific aviation security forum. Together, the four resolutions set out a practical, shared agenda for the region’s airlines, governments and regulators. “These resolutions show how Asia Pacific airlines intend to build an aviation industry that is sustainable, safe, secure and resilient. AAPA and its members stand ready to work with governments, regulators and partners across the industry to deliver it, so that Asia Pacific aviation continues to drive growth and connectivity across the region and beyond,” said Wong Hong. For Editorial Inquiries Contact: Editor Matt Driskill at [email protected] For Advertising Inquiries Contact: Head of Sales Sally Passey at [email protected]