Middle East carriers fight back

KUALA LUMPUR: Malaysia and other Asia-Pacific aviation markets could face stronger competition for international passengers as Middle Eastern airlines seek to win back traffic lost to Asian carriers following disruptions earlier this year.

Association of Asia Pacific Airlines (AAPA) director-general Wong Hong told Business Times: "You may get some shift, but Middle Eastern carriers are not going to give up without a fight.

"They will try to win customers back and take back the business they lost during the last four months."

"Whether it comes back to the same level is the question."

Since tensions began in the Middle East, several Asia-Pacific airlines have seen an increase in transit traffic as passengers opted for alternative routes through Asian hubs.

For example, Cathay Pacific said in March that Middle East disruptions had shifted passenger demand towards other aviation hubs, with more passengers transiting through Hong Kong.

The airline has added flights and increased capacity to Europe as travellers seek alternative routes.

On airfares, Hong said it was difficult to predict whether fares would rise or fall, as prices depend on market conditions and how aggressively airlines compete for passengers.

"Airfares are determined by supply and demand. If an airline puts out a particular airfare and the bookings do not come, what do you think it is going to do?

"Airlines need to be realistic. It comes down to what the market can bear and customers' willingness to pay."

Hong said airlines are also monitoring fuel prices as the industry approaches the end of the year.

He said regional airlines are hoping for a return to normal operations, with fuel prices stabilising at more manageable levels.

"If demand continues to hold up despite the inflationary risks, then I think that going into 2027, we will return to business as usual."