Asia-Pacific airlines will continue with their long-term growth efforts despite rising costs, S&P Global Ratings said in a Tuesday release.
Airlines are focusing their investments on new fuel-efficient aircraft amid long-term demand forecasts, a drop in post-pandemic debt and diversified funding, S&P said.
The region's airlines have 5,700 aircraft on order and capital commitments exceeding $300 billion, according to the rating agency.
Air carriers, especially low-cost ones, face increased jet fuel costs and weak currencies, the rating agency said.
Still, S&P sees better recovery starting the fourth quarter, with demand remaining strong despite increased fares.