KUALA LUMPUR, April 2 -- Tensions in the Middle East have driven up fuel costs, extended flight times and disrupted routes for Malaysian Aviation Group (MAG), underscoring the challenges facing airlines despite strong demand growth across the Asia-Pacific (Apac) region.

President and group chief executive officer Captain Nasaruddin A Bakar said the aviation industry continues to see strong expansion, particularly in the Apac region, where both passenger and cargo traffic are growing at a rapid pace.

"This industry is one of the fastest growing industries, especially in the Apac region, where we see high growth year on year in both passenger and cargo traffic," he said.

However, he noted that profitability remains extremely thin despite...