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Flight Centre Travel Group - logoIn a groundbreaking development for international travel, the Australia-China route will surpass its pre-pandemic capacity in January 2025. This historic milestone signals removing one of the final barriers to affordable international airfares, marking a critical moment for the aviation industry, trade, and tourism between the two nations.

According to Flight Centre Corporate, seat capacity between Australia and China will hit an impressive 104% of pre-pandemic levels early next year, spurred by new routes, additional carriers, and direct connections to Beijing Daxing Airport. This significant growth promises to reshape travel affordability and accessibility, fostering stronger ties between the two economic powerhouses.

A Game-Changer for Travel and Trade

“The limited capacity between Australia and China has been one of the key reasons for persistently high international airfares,” said Melissa Elf, Global COO of Flight Centre Corporate. “This influx of additional flights is the final frontier to achieving lower airfares.”

With capacity into China already at 79% of pre-pandemic levels as of November 2024, the January 2025 surge represents a pivotal moment. Flight Centre Corporate forecasts seasonal fluctuations in capacity, ranging from 90% to 104% throughout the year, ensuring sustained growth in passenger movement.

Melissa Elf, Flight Centre Corporate Global COO

Melissa Elf, Flight Centre Corporate Global COO.

Melbourne and Perth Lead the Charge

Melbourne emerges as the leader in capacity recovery, consistently exceeding 110% of pre-pandemic levels in 2025. Perth, however, is poised for a dramatic rebound. After years of limited connectivity, Perth’s capacity will soar from just 10% in November 2024 to nearly 90% by February 2025.

“Perth’s reconnection to China is a monumental development,” Elf noted. “Direct flights between Perth and Guangzhou resume for the first time in five years, adding 41,000 inbound seats annually and revitalizing Western Australia’s trade and tourism sectors.”

Economic and Sectoral Impacts

China remains a cornerstone of Australia’s economy, influencing key sectors such as education, manufacturing, mining, construction, and retail. The expanded flight capacity amplifies these ties, significantly boosting businesses and bilateral trade.

In 2023, Chinese visitors accounted for substantial economic contributions across various Australian states. With fares now softening, economy tickets between Australia and China are already 14% cheaper than in the same period last year, and corporate and leisure bookings are experiencing a sharp uptick.

“We’ve seen an increase in bookings of over 50% year-to-date compared to 2023,” Elf revealed. “This trend will only strengthen as more capacity becomes available, fostering competition and further lowering airfares.”

Strategic New Connections

Perth to Guangzhou – Rebuilding Vital Links

China Southern Airlines’ reinstated Perth-Guangzhou route is pivotal for Western Australia’s economy. The state’s largest trading partner, China, accounted for $147.7 billion in exports during 2022-2023. Pre-pandemic, Chinese visitors spent $367 million annually in Western Australia, underscoring the immense value of this restored connection.

Guangzhou also serves as a critical transit hub, linking passengers to 97 domestic and 53 international destinations, including Europe, Asia, and the Middle East.

Australia’s First Direct Link to Beijing Daxing Airport

Marking another first, Australia will establish direct flights to Beijing Daxing Airport in December 2024. Operated by China Southern Airlines, these flights will connect Sydney and Melbourne to one of China’s most advanced aviation hubs, which serves 197 destinations worldwide.

“Beijing Daxing Airport has rapidly become a key gateway for international travel,” Elf stated. “Its direct link to Oceania enhances accessibility for passengers and unlocks opportunities for businesses.”

Juneyao Airlines Enters the Australian Market

To add to the surge in capacity, Juneyao Airlines will debut in Australia in December with direct flights from Shanghai to Sydney and Melbourne. This new carrier will intensify competition and enhance one of China’s major economic hubs.

Key Milestones and Dates

  • November 28, 2024: Direct flights between Perth and Guangzhou resume via China Southern Airlines.
  • December 13, 2024: Australia establishes its first direct connection to Beijing Daxing Airport.
  • December 17 & 20, 2024: Juneyao Airlines launches direct routes between Shanghai and Australia.

Strengthening Bilateral Relationships

The resurgence in flight capacity aligns with Australia’s long-standing commitment to strengthening its relationship with China. As Elf emphasized, “The relationship between Australia and China holds immense significance for both governments, given its impact on economic growth, tourism, and cultural exchange.”

Shanghai, Beijing, and Guangzhou remain the top destinations for Australian corporate travellers, reflecting the enduring demand for business and tourism links between the nations.

A Bright Future for Aviation and Affordability

The expanded capacity between Australia and China signals a new era for international travel. As connectivity improves and competition increases, passengers can expect continued reductions in airfare costs, making travel between the two nations more accessible than ever.

“The additional capacity into China is not just a win for the aviation sector but a catalyst for economic growth and cultural exchange,” Elf concluded. “The future looks incredibly bright for passengers and businesses alike.”

This unprecedented growth in Australia-China air travel underscores the transformative power of increased connectivity. With trade, tourism, and affordability soaring to new heights, this milestone sets the stage for a prosperous and dynamic future in international relations.

Written by: Michelle Warner

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