Aviation travel data provider, OAG, has confirmed that Asia-Pacific is on track to solidify its position as the world’s most competitive aviation market in 2025, having surpassed 2019’s total capacity by 0.5 per cent last year.
OAG’s latest report, Is Asia Pacific the World’s Most Competitive Aviation Market?, stated that both domestic and international sectors showed remarkable growth and resilience in 2024. Domestic markets across the region operated at 4.7 per cent above 2019 levels in 2024 – underscoring the critical role of domestic travel in driving the region’s aviation recovery.
Chinese domestic capacity in 2024 stood 14 per cent above 2019, and India was 13 per cent ahead of pre-pandemic levels in 2024. These two countries, along with Japan and Indonesia, boasted more than 100 million seats in their domestic markets last year.
However, Japan remained four per cent behind 2019 domestic capacity levels as a combination of socio-economic factors hold back growth. Contributing to Indonesia’s slower return (17 per cent behind) are ongoing supply chain issues, with 27 per cent of the country’s aircraft currently stored or out for maintenance.
On the international front, the Asia-Pacific region achieved 594.8 million seats, making it the second-largest international aviation market globally. The region now accounts for one in every four international seats worldwide.
Leading the charge in international seat capacity are Singapore Airlines, Cathay Pacific, and China Eastern.
The report also found that airfares in the region had been driven down by rapid capacity expansion and increased competition. Average ticket prices on 17 of the 20 largest growth markets declined in 2024, many by more than 20 per cent, with Bangkok to Shanghai Pudong seeing a 71 per cent reduction in fares, year-on-year.
OAG’s head of Asia Pacific, Mayur Patel, said: “As the Asia-Pacific region continues to expand, the synergy of robust domestic recovery, dynamic international growth, and competitive strategic pricing makes it the world’s most vibrant and competitive aviation market.”
In an earlier interview with TTG Asia, Patel expressed confidence in air capacity improvements across the region in 2025, with tourism and tourism recovery and expansion particularly driven by the expansion of low-cost carrier operations.
