New Delhi: Highlighting the challenges being faced by the industry, Association of Asia Pacific Airlines (AAPA) on Friday said carriers are frustrated with supply chain disruptions and they also cannot be expected to carry the entire burden of sustainability transition.
Airlines are also grappling with operational and financial headwinds due to the West Asia crisis that has resulted in high fuel prices as well as airspace curbs.
"Conflicts, oil flow disruptions, global trade tensions, and the fast changing policies are reshaping airspace access, traffic flows, fuel markets and even the economics of entire airline networks," AAPA Director General Wong Hong said.
Addressing the grouping's 70th Assembly of Presidents in the city, he said "the supply chain disruptions continue to frustrate our recovery and growth ambitions.
"Aircraft deliveries remain constrained. Engine availability and maintenance bottlenecks are affecting fleet utilisation and prolonged delivery delays are making capacity planning increasingly difficult," Wong said.
The aircraft order backlog is estimated at over 16,000 and longer delivery timelines due to the supply chain woes are also delaying efforts of airlines to induct more fuel-efficient planes.
In the first nine months of 2026, passenger demand for Asia Pacific airlines grew 1.9 per cent and the average airline load factor stood at 83 per cent.
While mentioning that a full aircraft does not necessarily translate into a healthy bottom line, the DG of AAPA that represents 18 airlines, including Air India, said geopolitical tensions, currency volatility and economic uncertainties were putting further pressure on airline margins.
Sustainability Aviation Fuel (SAF) is the key element for the airline industry's decarbonisation roadmap but production capacity, availability and pricing remain significant barriers.
"We all recognise the urgency of decarbonising aviation. Yet the reality is that the transition remains difficult, expensive and uneven," Wong said.
Airlines cannot be expected to carry the entire burden of the sustainability transition, Wong said and emphasised that governments, fuel producers, airports, investors and the wider aviation ecosystem must all play their part.
"Of course, we all want to fly greener. But at today's SAF prices, the challenge is to make sure we don't end up flying greener while our financial performance turns redder," he noted.
For the long term, the growth potential is strong in the Asia Pacific region. "Expanding middle class, rising disposable incomes, growing urbanisation and increasing appetite for international travel provide powerful structural drivers for airlines in the Asia Pacific region," the AAPA DG said.
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