The Association of Asia Pacific Airlines (AAPA) has urged greater support from both governments and suppliers to help airlines achieve the net-zero emissions target by 2050. Speaking at the Routes Asia 2025 conference in Perth, Subhas Menon, AAPA’s Director General, stressed that airlines are bearing the brunt of the costs associated with the transition to a more sustainable aviation industry.

The aviation sector’s shift towards sustainability is outlined in the International Civil Aviation Organisation (ICAO) roadmap, which mandates that 66% of emissions reductions should come from Sustainable Aviation Fuel (SAF). Menon highlighted the significant increase in fuel expenses that this shift will create, adding that the financial burden on airlines is immense.

Financial Burden of SAF and Government Regulations

According to Menon, the additional costs incurred by the global aviation industry for using SAF will amount to US$4.7 trillion from 2024 to 2050, with most of this burden falling on airlines. Government regulations such as mandates and taxes, aimed at encouraging the use of sustainable fuels, will only further exacerbate the costs for airlines. By 2050, the airline industry is projected to spend US$744 billion on fuel, compared to US$1 billion in 2025.

Despite these challenges, Menon expressed confidence that the airline industry would ultimately meet the net-zero 2050 goal but emphasized that substantial support from both governments and suppliers will be necessary to make this transition feasible.

Strong Growth in Asia-Pacific Air Traffic

While the aviation sector has faced constraints due to supply chain issues and a slower-than-expected economic recovery, particularly in China, Menon pointed out that the Asia-Pacific region has already surpassed pre-pandemic levels in terms of air traffic. According to AAPA data, international air passenger demand in the region grew by 28% year-on-year in 2024, while cargo demand increased by 15% during the same period.

Menon acknowledged that while the capacity might suggest the region has not fully recovered, the demand for air travel in the Asia-Pacific is strong. This robust demand has led to record growth in the region, outpacing other parts of the world in terms of annual growth.

The Interconnectedness of the Aviation Sector and Global Economy

The air transport sector plays a pivotal role in the global economy, with Menon pointing out that when the aviation sector thrives, so do industries like tourism, investment, and trade. The health of the airline industry is closely tied to the global economy, and vice versa. Menon cautioned, however, about the ongoing macroeconomic uncertainties that could pose challenges in the future.

In conclusion, Menon stressed that the transition to net-zero emissions by 2050 is a critical objective for the aviation sector, but it can only be achieved through collaborative efforts between governments, airlines, and suppliers. The support of these key stakeholders will be vital in easing the financial burden on airlines and ensuring the long-term sustainability of the aviation industry.

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