China Airlines ordered five Airbus A350-1000s in December. Airbus plans to include a A350-1000 in the Singapore Airshow flying display.
The 2026 Singapore Airshow is around the corner, casting a spotlight on the expected performance of airlines in Asia-Pacific and China in a region that has seen a return to robust demand for air travel.
As a whole, IATA is forecasting that airlines across the region will be profitable this year, with China and India leading regional expansion. IATA attributes the expected growth and profitability to rising tourism and growing middle classes. The easing of visa requirements for Chinese tour groups to South Korea and other Asian countries, as well as for visitors to China, is also helping to stimulate inbound demand, especially during holiday periods, IATA said. One example is Shanghai, where the number of tourists from visa-exempt countries increased by 55% year-on-year once new policies were implemented.
However, airline collective net profit margins across the wider region will still be thin and essentially flat, at an estimated $6.6 billion this year versus $6.2 billion in 2025; a margin of just 2.3% each year.
“Overcapacity remains a challenge amid a slower [post-pandemic] recovery in international traffic, putting pressure on yields,” IATA said in its 2026 outlook, published in December.
“Nevertheless, Asia-Pacific remains the largest contributor to global traffic growth, with load factors projected to reach 84.4% in 2026, an all-time high for the region.”
While tariffs and trade wars last year presented challenges for the industry, especially the air cargo market, and flight frequencies between China and the US were reduced, China was effective in finding alternative markets for goods that were primarily aimed at the US, helping offset the impact.
At the airshow, which opens on Feb. 3, the commercial airliner presence in the flying and static displays looks to be light—down to an Airbus A350-1000 and a COMAC C919 in the flying display, with an Airbus A220 and COMAC C909 in the static park. But Asia and China have become key market opportunities for these aircraft, so Airbus and COMAC will want to showcase them. Taiwan-based China Airlines became one of the most recent Asian carriers to increase its A350-1000 fleet when it placed a firm order for five -1000s in December, taking its total order for the type to 15. China Airlines already operates 15 A350-900s.
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