Airline profit margins are being pressured by high oil prices while the recent deterioration in the global economic outlook could potentially undermine business and consumer confidence, leading to a “more cautious” view on medium-term growth prospects, the Association of Asia Pacific Airlines (AAPA) said. AAPA, which has previously noted it has seen only “modest revenue growth” in 2011, stated that while passenger travel demand is still “quite strong”, supported by continued growth in both business and leisure travel, cargo markets remain weak.
