ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print
Business trends

Asia's irrationally exuberant airlines chase away profits

Carriers harvest less than $5 per passenger as more competitors crowd in

Although AirAsia throughout Southeast Asia, but faces stiff competition outside its home turf of Malaysia. (Photo by Keiichiro Asahara)
AirAsia has built a network of budget airlines across much of Asia but has only been able to find reliable profits in Malaysia. (Photo by Keiichiro Asahara)

BANGKOK/MUMBAI -- Fierce competition is decimating the bottom lines of Asia's airlines despite swelling passenger numbers.

Budget airlines have become especially popular among the region's enthusiastic middle-class travelers, but their proliferation has resulted in a profit margin of less than $5 per passenger, according to the Association of Asia Pacific Airlines.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more