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The Asia Pacific (ASPAC) aviation industry has achieved a significant milestone, surpassing its pre-pandemic total capacity for the first time, according to the latest data from travel intelligence provider OAG. With total airline capacity exceeding 2019 by 0.5% in 2024, the region is poised to solidify its standing as the world’s most competitive aviation market by 2025.

Domestic Market Drives Aviation Recovery

Domestic travel spearheads the industry’s resurgence, operating 4.7% above pre-pandemic levels. China and India lead this remarkable recovery, boasting 14% and 13% growth in domestic capacity, respectively. These two aviation powerhouses, along with Japan and Indonesia, collectively account for over 100 million seats in their domestic airspace, underlining their critical role in the region’s overall aviation strength.

However, not all markets have rebounded equally. Japan’s domestic capacity remains 4% below 2019 due to economic and social factors impacting travel demand. Meanwhile, Indonesia faces significant operational challenges, with 27% of its aircraft fleet currently stored or undergoing maintenance, slowing its return to full capacity by 17% compared to pre-pandemic levels.

International Air Travel Gains Momentum

The international aviation sector in ASPAC has also experienced substantial growth, now hosting 594.8 million seats—making it the world’s second-largest international market. Although still trailing 2019 figures, the region accounts for one in four global international seats, reinforcing its strategic importance in global aviation.

Singapore Airlines, Cathay Pacific, and China Eastern Airlines are at the forefront of this international surge. Singapore Airlines has expanded its seat capacity by 14.1% beyond 2019 levels, while Scoot and EVA Airways have recorded increases of 13.8% and 4.5%, respectively. These airlines’ robust recovery underscores the strength of Asia Pacific’s aviation market as it continues to outpace expectations.

Airfare Prices Plummet Amid Intensified Competition

With increasing capacity and heightened competition, regional airfares have dropped significantly. OAG’s report highlights that ticket prices on 17 of the 20 most extensive growth routes have declined, with some reductions exceeding 20%. The most dramatic plunge has been observed on the Bangkok to Shanghai Pudong (BKK-PVG) route, where fares have fallen by an astonishing 71% year-on-year.

Mayur Patel, Head of Asia Pacific at OAG, emphasized the significance of these developments, stating:

“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.”

What This Means for Travelers and the Industry

The intensified competition and price reductions present a golden opportunity for travellers, making air travel more accessible and affordable. Additionally, airline capacity expansion suggests strong consumer demand and confidence in the aviation sector’s continued growth.

With ASPAC airlines aggressively vying for market share, 2025 is set to be a transformative year for the industry. As air carriers introduce more routes, enhance services, and innovate pricing strategies, Asia Pacific is the global leader in aviation resurgence.

Read OAG’s report, Is Asia Pacific the Most Competitive Aviation Market, for the complete analysis.