Asia Pacific Airlines Seek Government Aid as Jet Fuel Costs Squeeze Carriers

Asia Pacific airlines pressed governments on Friday to provide timely and practical help as high fuel prices and operational uncertainty weigh on carriers. The call came at the close of the 70th Assembly of Presidents of the Association of Asia Pacific Airlines in Kuala Lumpur. The association represents 18 carriers, including Air India.

The grouping's director general, Wong Hong, said the operating environment for airlines in the region had changed markedly over the past twelve months. He said carriers had continued to show resilience and adaptability, but that a sharp escalation in fuel prices, combined with other cost pressures and operational uncertainty, had created a far more demanding environment. Governments, he said, must recognize these pressures and work constructively with the industry on support that protects the long-term viability of air transport across the region.

Fuel Takes a Third of Costs

Aviation turbine fuel generally accounts for around 33 percent of an airline's operating costs, according to the association. Prices have risen sharply amid the West Asia crisis, adding to the financial burden on carriers. The association also said aviation should be viewed as an enabler of economic activity, trade, tourism and regional connectivity, rather than only as a source of government revenue.

The pressure is already visible in results. Singapore Airlines reported a 44 percent drop in net profit for the first half of its 2027 financial year, driven by lower operating profit. In India, domestic carriers are dealing with a weak rupee and higher jet fuel prices alongside subdued travel demand.

Separate airport data underlined the demand side of the problem. Passenger traffic in India fell 2.9 percent in the April to September period, with domestic traffic down 1.9 percent and international traffic down 7.1 percent. Aircraft movements fell 3.5 percent over the same period, pointing to fewer flights as airlines trimmed capacity or raised fares to cover fuel. The figures, released by the Airports Authority of India, cover both arriving and departing passengers across all airports.

What It Means for Travel Jobs

For workers across airlines, airports and travel services, the combination of higher fuel bills and softer demand translates into cautious hiring and tighter scheduling. Carriers that ground aircraft or cut capacity need fewer crew, ground handlers and airport transfer staff on some routes, while fare increases can dampen leisure bookings that support hotels and tourism operators. Airline operating costs are therefore a direct input into employment planning across the wider travel sector, not just in the cockpit and cabin.

The association adopted four resolutions covering aviation sustainability, passenger rights, cabin safety and aviation security. It asked for a more coordinated approach among governments, regulators and industry stakeholders to address shared issues. On cabin safety, it called for stronger collaboration to tackle risks including lithium batteries, unruly passengers, medical emergencies, evacuations and crew training.

Sustainable Fuel Targets

On sustainability, the group reaffirmed a target of 5 percent sustainable aviation fuel use by 2030, in support of the International Civil Aviation Organization's long-term goal of net-zero carbon emissions by 2050. It urged governments to adopt policy principles for national and regional fuel frameworks. These include encouraging competition across the fuel value chain, a technology-neutral and performance-based approach, clear certification requirements, policy harmonization, and flexibility for airlines in procuring the fuel, including acceptance of book-and-claim arrangements within a region.

What to watch next is whether governments in the region respond with concrete measures such as tax relief or coordinated fuel policy, and whether fuel prices ease from current levels. Also in focus is how quickly carriers adjust schedules and staffing if demand stays weak, and whether the sustainable fuel principles translate into national rules. The association's members will be judged on whether they can hold capacity and connectivity together while costs stay elevated.