The Asia-Pacific (ASPAC) region is poised to solidify its position as the world’s most competitive aviation market by 2025, according to the latest analysis from leading travel data provider OAG. The region has already surpassed 2019’s total capacity by 0.5% in 2024, driven by remarkable growth in both domestic and international sectors.

China and India are leading the charge, with domestic capacity now 14% and 13% above 2019 levels, respectively. Alongside Japan and Indonesia, these countries boast domestic markets with more than 100 million seats. However, not all markets have fully recovered. Japan remains 4% behind 2019 domestic capacity levels due to socio-economic challenges, while Indonesia lags 17% behind, partly due to ongoing supply chain issues. According to the report, 27% of Indonesia’s aircraft are currently stored or undergoing maintenance.

On the international front, the ASPAC region has achieved 594.8 million seats, making it the second-largest international aviation market globally. While this figure remains below 2019 levels, the region now accounts for one in every four international seats worldwide.

Singapore Airlines, Cathay Pacific, and China Eastern are leading the way in international seat capacity. Notably, Singapore Airlines is among the top three Asia-Pacific carriers that have surpassed their 2019 international capacity levels, operating 14.1% more seats in 2024. The other two airlines are Scoot (+13.8%) and EVA Airways (+4.5%).

The report also highlights how rapid capacity expansion and increased competition have driven down airfares across the region. Average ticket prices on 17 of the 20 largest growth markets have declined, with many seeing reductions of more than 20%. The most dramatic drop was on the Bangkok to Shanghai Pudong (BKK-PVG) route, where fares fell by 71% year-on-year.

Mayur Patel, OAG’s Head of Asia Pacific, commented on the findings:
“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.”

Key Takeaways from the Report:

• Total capacity in the ASPAC region has surpassed pre-pandemic levels, reaching 0.5% above 2019 figures.
• Domestic markets are outperforming 2019 levels by 4.7%, with China and India leading the recovery.
• Competitive pricing has driven significant reductions in airfares, with some routes seeing ticket prices drop by up to 71%.

As the region continues to recover and expand, the ASPAC aviation market is set to become a global benchmark for growth, resilience, and competitiveness.

Source: OAG report, “Is Asia Pacific the World’s Most Competitive Aviation Market?”