Now, slowing economies and surging costs have brought them down to earth. It may be years before things look up. We will see more over-capacity, lower yields, bigger losses, more price cutting and even fewer passengers. Korean, Japanese and Taiwan tourists used to fill most of the seats. Now only the Taiwanese are still traveling.
Airlines are particularly vulnerable to the currency devaluations in the region.
Around half their revenue is in local currency, but they have to pay U.S. dollars for fuel and aircraft. Most airlines are already feeling the cash crunch. Korean Air said in December it will sell five passenger aircraft to its creditors, and lease them back. And Cathay Pacific had to hold off buying several Boeing 777s. Weaker currencies in destination countries may eventually get tourists to travel, but some airlines are not waiting.