Budget airlines bet on travel demand


Leading the way: An AirAsia plane prepares to land in Chiangmai, Thailand. As of March 31 this year, AirAsia had 225 planes in its fleet.

SEOUL: South-East Asia’s biggest budget airlines are pursuing a bruising capacity expansion race despite rising cost pressures that are squeezing profitability and led Qantas Airways to shut down Singapore-based offshoot Jetstar Asia.

Low-cost carriers have proliferated in Asia in the past two decades as disposable incomes rise, supported by robust travel demand from Chinese tourists.

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