Airlines Face Fuel Costs, Supply Strain
Association of Asia Pacific Airlines names high fuel prices, supply chain issues and sustainability as the sector's main challenges.
Updated on Nov. 12, 2026 in Transportation
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Association of Asia Pacific Airlines Director General Wong Hong identified high fuel prices, supply chain issues and sustainability as the main challenges facing airlines. The remarks were made at a media roundtable in Kuala Lumpur.
Why it matters
Jet fuel prices have surged mainly due to the West Asia crisis, and fuel accounts for around 33 per cent of an airline's operational costs. The Association represents 18 regional airlines, including Air India, so the pressures shape carriers across the Asia Pacific region.
Aviation Turbine Fuel accounts for around 33 per cent of an airline's operational costs, and the jet fuel crack spread, the margin charged for converting crude into jet fuel, is the highest seen in many years. The aircraft backlog is estimated at over 16,000, and India alone has more than 1,600 domestic planes on order, though the timing of deliveries and any easing of fuel margins were not specified.
The players
Association of Asia Pacific Airlines (AAPA)
A regional trade body representing 18 airlines across the Asia Pacific, including Air India, that advocates for the industry's shared interests.
Wong Hong
Director General of the Association of Asia Pacific Airlines, who spoke publicly on the sector's fuel, supply chain and sustainability challenges.
The details
Wong Hong, Director General of the Association of Asia Pacific Airlines, said at a media roundtable in Kuala Lumpur that high fuel prices, supply chain issues and sustainability are the main challenges for the industry. The Association, which represents 18 airlines in the region, is holding its 70th Assembly of Presidents in Kuala Lumpur on November 12 and 13.
Timeline
November 12, 2026: AAPA Director General remarks made at a media roundtable in Kuala Lumpur.
November 12 and 13, 2026: AAPA 70th Assembly of Presidents held in Kuala Lumpur.
Season Trajectory
The jet fuel crack spread is at its highest in many years, meaning refining margins are adding to the cost pressure that began with the West Asia crisis. That layering suggests airline cost pressure is not limited to crude prices alone.
Because fuel makes up roughly a third of an airline's operating costs, higher jet fuel prices can translate into pressure on fares and route decisions for travelers. The extraction does not confirm specific fare changes, so the practical effect on ticket prices remains unclear.
The takeaway
Airline costs in the region are being pushed up by fuel prices, supply constraints and sustainability demands at the same time. Travelers and investors should watch how carriers pass these costs on through fares and capacity decisions.
Further reading
For broader context on how these pressures play out across the sector, explore more Transportation coverage.
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