Asia travel demand stays resilient despite Middle East conflict, volatile airfares: Skyscanner CEO

Artificial intelligence is changing how travellers plan their trips and challenging traditional travel search platforms, Skyscanner CEO Bryan Batista tells CNA’s Elizabeth Neo.

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30 Sep 2026 02:35PM

SINGAPORE: Travel demand in Asia remains resilient despite the Middle East conflict disrupting flights and contributing to volatile airfares, with travellers increasingly opting for shorter-haul trips, according to Skyscanner CEO Bryan Batista.

“The Middle East conflict has definitely driven some volatility in fuel prices, which has then driven volatility in airline pricing,” Mr Batista told CNA’s Asia First on Wednesday (Sep 30).

But the travel industry is accustomed to responding to shocks, including natural disasters, he added.

“Travel is a very resilient industry. And the industry has, let's say, adapted accordingly.”

Mr Batista said airlines have become more proactive in planning their schedules, taking into account available capacity and their hedged fuel costs as they seek to minimise cancellations and give passengers advance warning of any possible impacts.

Travel demand has held up, particularly in Asia.

“Global travel search demand is still up, led by travel in Asia,” said Mr Batista.

“In 2025, we saw the Asia-Pacific region growing quickest from a flights perspective at 7.8 per cent year over year.”

The appetite for travel also remains strong among Singaporean travellers, with 89 per cent saying they intend to travel at least as much next year as they did in 2026, he said.

SHORTER-HAUL TRAVEL GAINS GROUND

While people are continuing to travel, where they choose to go is changing.

Skyscanner has seen greater demand for shorter-haul travel, as travellers seek to avoid volatile prices on longer routes and potential regional disruptions.

Visa-free entry schemes have also helped drive the shift, Mr Batista said.

“For example, also thanks to visa-free policies being put in place, we've seen Singapore to China travel increase tremendously,” he said, citing a 25 per cent increase in search demand from Singapore to China.

Search demand from Australia to China, meanwhile, rose 48 per cent year on year, he added.

Air traffic patterns are also adjusting to disruptions in the Middle East.

“We're also seeing some new airline corridors show up. We've seen other airline hubs like Singapore, Kuala Lumpur, also Hong Kong start to take some of those international flights from those traditional Middle Eastern hubs,” he added.

AIRFARES REMAIN UP IN THE AIR

The volatility in fuel prices has also put airfares under scrutiny.

Mr Batista said airlines generally set their pricing according to consumer demand, available capacity and operational costs, with jet fuel being “one of the biggest”.

“Whilst jet fuel prices remain volatile, so do airline prices,” he said.

“However, I'd expect that as those jet fuel prices stabilise, and hopefully they do, you will see airline prices come down.”

He said airlines still want to remain competitive and deliver value to consumers.

Travellers, too, have more tools to manage uncertainty, he said, adding that price-comparison platforms such as Skyscanner have become more important.

The company has also introduced a layover filter that allows travellers to avoid certain airports they would rather not transit through.

Information about potential airspace closures and flight cancellations, as well as insurance products that can help travellers manage risk, is becoming increasingly important, he said.

HOW AI IS CHANGING TRAVEL SEARCH

At the same time, artificial intelligence is changing how travellers decide where to go and plan their trips.

A report published this month by Skift Research and McKinsey & Company, based on a survey of more than 1,000 travellers in the United States, found that 71 per cent were comfortable using AI for travel inspiration, while 86 per cent said they would consider using AI to book trips in the future.

In Singapore, 65 per cent of travellers say they are comfortable and confident using AI tools in their travel planning, said Mr Batista.

“As we move with AI from search to answers to recommendations, we'll be able to better give travellers a more relevant, more personalised, more reliable answer for what's best for them for a particular trip,” he said.

Such recommendations could take into account the reasons for travel, how quickly they need to get to the destination and budget concerns, he added.

The rise of generative AI also presents a challenge to travel search platforms, as tools such as Google Gemini and OpenAI’s ChatGPT are able to research destinations and plan itineraries.

Asked how Skyscanner was responding to competition from these AI tools, Mr Batista said the same technology was available to the company and was being implemented as well.

“We have the ability to actually extend further into the passenger journey these days,” he said. “We're testing rigorously around agentic booking capabilities, for example, something we weren't able to do before.”

The company is also seeking to combine AI along with its two decades' worth of flight search data.

“AI gives us an advantage and allows us to build on our background of trusted and deep airline pricing and supply.”