Absent Chinese tourists weigh on Asia-Pacific airlines’ recovery as regional travel rebound stumbles

On a chilly December morning in Geneva, Willie Walsh, the aviation world’s pugnacious champion, delivered some warm news on a global recovery in flying, predicting a bumper 2024 for airlines. But in the fair-weather world of travel, the Asia-Pacific region, once the fastest-growing aviation market globally, is now lagging behind. Volatile oil prices and limited airline capacity have been pushing up fares across the region, as the much-touted post-pandemic “revenge travel” trend is muted by cost-of-living crises that have downsized the holiday plans of tens of millions of people, and an economic crunch in China that has ripped away thousands of international seats. The IATA, which Walsh heads, predicts that the Asia-Pacific region will return to pre-pandemic travel levels next year with a net profit margin of 0.5%. By comparison, airlines in Europe, North America and the Middle East are all forecast to post profit margins of 3.3% or greater next year. Those in Latin America and Africa are expected to make losses.<br/>