Passenger load factor for Asia Pacific carriers hit a record 81.6% across 2024 as demand remained strong but the Association of Asia Pacific Airlines (AAPA) expects that growth will moderate this year. The region's airlines carried a combined 365 million international passengers, up 31% year on year, preliminary figures from the association of show. That helped to push RPKs up 28% as ASKs increased 27%, delivering a 0.9 percentage point lift in load factor, despite challenges for airlines that have faced ongoing supply chain shortages and aircraft delivery delays, AAPA director general Subhas Menon. "The post-pandemic recovery on North East Asia routes, helped by the relaxation of visa policies, together with overall healthy demand across the region, drove growth in both leisure and business travel markets," he adds. On the cargo front, demand grew 15%, which was almost in line with the growth in freight capacity, keeping load factor broadly stable at 61%. "Despite weakness in the global manufacturing sector, Asia Pacific carriers saw significant growth in their air cargo business, driven by a surge in e-commerce sales and the region's role as a manufacturing hub, particularly in China. Persistent disruptions in maritime shipping also encouraged a modal shift in transport, contributing to the 15% growth in international air cargo demand for the year," says Menon. He adds that the outlook for air travel markets in 2025 remains broadly positive, although growth rates are expected to moderate further. "However, airlines continue to face challenges, including rising labour, maintenance, and aircraft leasing costs, as well as operational pressures due to ongoing delays in aircraft deliveries. To navigate these challenges, airlines are focusing on active cost management and seeking the commitment of equipment suppliers to address supply chain problems, while continuing to invest in growth opportunities."

Market watchers should not get "mixed up" with the idea that Lufthansa's decision to buy a stake in Latvian carrier Air Baltic is a bid for greater consolidation, the German group's chief executive Carsten Spohr has cautioned. During a webcasted press conference in Rome on 3 February, Spohr explained that the deal was instead about "strengthening and deepening" Air Baltic's position as a wet-lease provider to Lufthansa. This makes it distinct from the group's successful bid for ITA and any potential offer for Portugal's TAP, which it has rationalised as being about finding synergies across the companies and building up its hubs to connect with long-haul traffic. Air Baltic is providing Lufthansa Group with up to 21 Airbus A220-300s during the summer and five during the winter through 2025, under a deal signed in September 2024. Following the engine-maintenance issues that prompted the Latvian carrier to cancel swathes of its services this summer, Lufthansa announced on 29 January that it had paid €14 million ($14.5 million) for a 10% stake in Air Baltic. Lufthansa effected the transaction by purchasing convertible shares that can be transformed into ordinary shares during a potential Air Baltic IPO. The German group is guaranteed a minimum 5% stake. The deal is set to close in the second quarter, pending antitrust approval. Lufthansa is to gain a seat on Air Baltic's supervisory board.

European regulators have reduced their aviation security risk assessment for Israel and Iran following the Gaza ceasefire agreement. The European Union Aviation Safety Agency says conflict zone information bulletins (CZIBs) for the airspace of Israel and Iran will not be extended beyond their 31 January expiry. The decision was made by the Integrated EU Aviation Security Group in response to "the agreed ceasefire agreements and overall reduction of short-term tensions", EASA notes. An existing CZIP for Lebanon's airspace has been extended to 31 March, however. Under the expired CZIBs, EASA had advised operators not to fly in Iranian airspace at any levels, and to "implement a stringent monitoring process and risk assessment" for flights in Israel's airspace. The CZIBs will be replaced with dedicated information notes to highlight "remaining risks", the regulator says. The information notes advise operators to "exercise caution and follow all available aeronautical publications" and additionally in Iran's case to "consider daylight operations only". EASA says the information notes will be "distributed to relevant parties on a need-to-know basis to provide more operational background and recommendations". Together with the European Commission and member states, EASA will continue to monitor the situation and assess risks for EU operators "as a result of the evolution of the threat", the regulator notes.