IATA Chief Highlights Asia-Pacific’s Growth, Flags Lagging Margins

SINGAPORE—While the Asia-Pacific region leads the way in terms of airline demand growth, it remains well below average in terms of profit margins, according to IATA Director General Willie Walsh.

IATA statistics show the Asia-Pacific region recorded year-on-year passenger traffic growth of 7.8% in 2025, with a 10.9% rise in international traffic. That system traffic growth was significantly higher than the global average of 5.3%.

Growth is likely to moderate slightly this year, with a global estimate of 4.9% and Asia-Pacific growth at 7.3%, Walsh said during the Changi Aviation Summit on Feb. 2.

This emphasizes that global growth is not even, Walsh said. He noted that the Asia-Pacific share of global traffic—as measured in revenue passenger kilometers—was at 20% in 1990 and had risen to 34% in 2025.

In contrast, the European share has dropped by two percentage points to 26% over the same time frame, and the North American share had declined from 42% in 1990 to 22% last year. The Latin American share has remained essentially the same at just over 2%.

Within the Asia-Pacific region, dramatic growth in China has been a major driver of expansion, Walsh noted. China’s domestic traffic accounted for 2.5% of the global total in 1990 but now represents 11.5%. Growth has also been very strong in India.

However, the Asia-Pacific lags in terms of margins, Walsh said. Average operating margin for the region’s airlines is estimated to be slightly lower than 5% this year, with net margin at 2.3%. In contrast, the global net margin is forecast to be 3.9%, and the operating margin 6.9%.

Average net profit per passenger is projected to be $7.90 globally this year, and just over $3 per passenger in Asia-Pacific, he said.

Walsh also highlighted the lack of progress on producing sustainable aviation fuel globally. SAF production reached 1.9 million tons in 2025, representing just 0.6% of total jet fuel consumption. This is actually a downward revision from earlier projections, Walsh said. “Unfortunately, planned production has faltered.”

SAF usage mandates have tended to push prices higher, Walsh said. SAF prices generally exceed fossil-based fuel prices by a factor of two, but Walsh claimed that studies show that in markets with mandates, SAF prices are higher by a factor of up to four.