Asia-Pacific may boast some of the world's finest airlines, but they are also the worst performers in profitability, with the exclusion of loss-ridden Africa.
These airlines are expected to earn just over US$5 a passenger this year compared with more than $21 for those in North America, where most of the industry's $36-billion profits are made.
Profitability is even lagging in the subregion of Southeast Asia, home to high-flying carriers such as Singapore Airlines and Thai Airways International, according to the International Air Transport Association (IATA).
In last year's fourth quarter, the average ebit (earnings before interest and tax) margin, a measurement of a company's operating profitability, of Southeast Asian carriers was 0.3%, the lowest among all regions except Africa, where losses were being generated.
By comparison, Middle East carriers achieved 10.8% profitability, Europe 5.9% and North America 13.8%.
Asia-Pacific airlines this year are projected to make $6.6 billion in profits, while North America will generate a massive $19.2 billion.
Why is Asia-Pacific, with so much potential, lagging in profitability? IATA chief Tony Tyler offered some clues.
First, while fuel prices have fallen the value of the US dollar -- the currency used by the region's carriers to buy fuel -- has appreciated by some 20% on average.
Apart from fuel, the airlines also make many other purchases in dollars.
Second, Asia-Pacific accounts for some 40% of the global air cargo business, which has seen better days.
Globally, air cargo revenue peaked at $67 billion a few years ago. This year IATA anticipates revenue of $50 billion.
"I am still a long-term optimist on cargo, but there are severe challenges to improving the value proposition with improved technology and processes," Mr Tyler said.
Third, this region is home to ever-intensifying competition.
At the regional level, "low-cost" competition has a 54% market share -- the highest in the world.
In parallel, the super-connectors of the Persian Gulf have increased competition on what was a traditional market for Southeast Asian carriers -- routes from Europe to Asia and down to Australia.
"Of course, competition is always a good thing. Consumers are getting a great deal," Mr Tyler said. "And it will get even better as airlines respond to changing consumer demands with innovation."
But preserving a healthy air transport sector in Southeast Asia extended beyond being an industry challenge -- governments and infrastructure providers will also need to help keep costs low and efficiency high, he added.