Asian airlines are at risk of collapse like Spirit Airlines unless governments provide substantial support, the Association of Asia Pacific Airlines (AAPA) said this month [1, 2, 3, 4]. Jet fuel prices have more than doubled since late February following the outbreak of the Iran war, putting extreme financial pressure on carriers in the region [1, 2, 4].

Spirit Airlines ceased operations in early May due to soaring fuel costs, serving as a warning to other airlines in Asia facing similar challenges [1, 2, 3, 4]. Wong Hong, who took over as director general of the AAPA in April, said, "Nobody wants to see any airline getting into a situation like what we are seeing with Spirit. If those things were to happen before governments take action, that would be a pity" [1, 2]. He added that governments need to better understand the critical airline ecosystem to prevent more collapses [4].

AAPA represents 18 member airlines including Singapore Airlines, Cathay Pacific Airways, Air India, and Qantas Airways [1, 2, 4]. The group says carriers require various forms of government help, ranging from direct financial aid to the ability to reduce flight schedules without facing negative consequences [1, 2, 3, 4]. Airlines currently face criticism from governments for cutting flights, illustrating a gap in understanding of their difficult situation [1, 2, 4].

Governments in some countries have begun limited support measures since late February. Malaysia has offered extensions and exemptions on airport fees for airlines [1, 2, 4], while India has reduced duties on jet fuel to ease cost pressures [1, 2, 4]. Hong Kong airlines and state-controlled Air New Zealand have so far not received government support despite forecasting heavy full-year losses and accelerating cost-cutting plans [1, 2, 3, 4].

AAPA expects Asian carriers to see lower profitability, fewer passengers, and reduced capacity in 2026 amid persistently high ticket prices [1, 2, 4]. Wong Hong aims to expand the association’s membership by convincing the first mainland Chinese airline to join during his tenure [1, 2, 4].

The association continues to urge governments to act swiftly as the aviation industry navigates this unprecedented jet fuel price surge and its fallout.