REGIONAL carrier SilkAir, a unit of Singapore Airlines, said yesterday that passenger demand grew from a year ago, a sign that the economic slowdown in developed countries hasn't crimped Asian air travel.

"Demand is still robust," SilkAir Chief Executive Chin Yau Seng said. "The Asian traveler has held up well so far."

SilkAir flights flew at an average of 72.7 percent of capacity in the second quarter, up 3.2 percentage points from the same period a year ago, Chin said.

The boost in demand helped offset rising fuel costs and increased revenue by 19 percent in the April-June period to 131 million Singapore dollars (US$92.4 million). Profit rose 80 percent to S$10 million, Chin said.

The airline, which has flights to 29 Asian cities, yesterday unveiled the first of 12 Airbus A320s it plans to buy over the next three years. The purchases will bring its total fleet to about 21 planes.

Chin said the Airbus A320 has a gross cost of about US$60 million each, but he declined to say how much SilkAir paid.

SilkAir has an option to buy an additional nine Airbus planes by 2011, Chin said.

SilkAir has been able to pass about half of the increase in fuel costs this year on to customers through a surcharge, Chin said.

A major earthquake and the Beijing Olympics hurt demand in the Chinese mainland in the second quarter.

"It's a hiccup in our growth," Chin said. "We're still committed to the Chinese mainland market."