UBS: This year’s air cargo capacity growth is expected to lag behind potential demand growth, indirectly enhancing the pricing power of airlines in the Asia-Pacific region.

Glonghui June 4th｜UBS Asia transportation industry analyst Yang Yupeng stated that this year, the growth of airline capacity is expected to be lower than the growth of potential demand. The aircraft supply shortage is mainly due to slow production progress, caused by factors such as supply chain issues, insufficient aircraft retirements leading to fewer available used spare parts, and a shortage of experienced technical labor. This has indirectly strengthened the pricing power of airlines in the Asia-Pacific region. Different airlines are expected to show divergent growth performances, depending on their market positioning.