Tony Tyler, general director of the International Air Transport Association, said at the Singapore Airshow that even though global oil prices had dropped and the US dollar had appreciated by about 20 per cent over the last 18 months, the positive effects on the airline sector were limited.

He said the Asia-Pacific region now accounted for 40 per cent of the world’s cargo market but the business this year would be lower than its peak a few years ago.

Meanwhile, low-cost airlines, which controlled 54 per cent of the market – the highest in the world – would face more intense competition.

Tyler will be in Bangkok today to say more about the outlook for aviation.

Khaw Boon Wan, Singapore’s minister of transport, warned that the gloomy economic outlook could portend a slowdown of air travel in the region. However, he believes that the sector will bounce back eventually, as the number of passengers in Asean has tripled from a decade ago while the number of routes has increased by 40 per cent to more than 1,500.

In the meantime, Singapore has managed to attract more investment for high aviation technology, as Pratt & Whitney has just opened a factory in Seletar Aerospace Park. The new facility will produce PurePower Geared Turbofan engines for Airbus, Bombardier and other aircraft makers. The island republic is also an attractive destination for airlines from China, as West Air recently introduced a new Chongqing-Singapore route, utilising the Airbus A320-200.

According to air-show reports, Chinese airlines are expected to report large profits for 2015 thanks to lower oil prices and higher market demand.

Spring Airlines said its income would increase by 50-60 per cent compared with 2014.

This budget airline has enjoyed the drop in oil prices as well as healthy demand in international markets.

Air China predicted its income would jump by 60-80 per cent from 2014 for the same reasons. China Southern Airlines is on the same track with high hopes a 130-per-cent jump in revenue from 2014.

Myanmar, which began opening up to the world in 2012 after decades of military rule, is gaining more international tourists. A total of 22 foreign airlines carried about 3.2 million passengers into the country last year. That number is expected to grow further this year and throughout the next decade.

Thai Smile Airways plans to begin operating flights from Suvarnabhumi Airport to Mandalay in October and to Yangon in December.

Next month, Emirates plans to launch its first direct service to New Zealand, which will be claimed as the world’s longest flight. The Dubai-Auckland flight will utilise the Boeing 777-200ER. Currently, Qantas’ Sydney-Dallas route is the longest flight, using the Airbus A380. The new Emirates service of is expected to take 15 hours and 55 minutes eastbound from Dubai and 17 hours 15 minutes on the return flight from Auckland.

Korean Air is scheduled to receive 16 passenger aircraft and five freighters this year.