APAC SET TO BECOME WORLD'S MOST COMPETITIVE AVIATION MARKET, OUTPERFORMS 2019 CAPACITY - OAG

KUALA LUMPUR, Feb 18 (Bernama) -- The Asia-Pacific (APAC) region 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 in 2024, according to the latest analysis by travel data provider OAG.

Both domestic and international sectors in the region are seeing significant growth and resilience, according to OAG in a statement.

OAG’s report, ‘Is Asia Pacific the World’s Most Competitive Aviation Market?’ reveals that domestic markets in APAC are thriving, operating at 4.7 per cent above 2019 levels. This strong recovery highlights the importance of domestic travel in driving the aviation rebound.

OAG Head of Asia Pacific, Mayur Patel commented that the combination of strong domestic recovery, international growth, and competitive pricing makes APAC the world’s most vibrant and competitive aviation market.

China’s domestic capacity is 14 per cent and India is 13 per cent ahead of pre-pandemic levels. Japan and Indonesia also show growth, with each country’s domestic market now exceeding 100 million seats.

However, Japan remains four per cent below 2019 domestic capacity due to socio-economic factors, and Indonesia’s recovery is slower, lagging by 17 per cent due to supply chain challenges, with 27 per cent of aircraft grounded or in maintenance.

On the international front, APAC region recorded 594.8 million seats, making it the second-largest international aviation market globally. Singapore Airlines, Cathay Pacific, and China Eastern are leading international seat capacity, with Singapore Airlines exceeding its 2019 levels by 14.1 per cent. Scoot and EVA Airways also recorded growth at 13.8 per cent and 4.5 per cent, respectively.

The report highlights intensified competition and capacity expansion as key factors driving airfare reductions across the region. Average ticket prices on 17 of the 20 largest growth markets have declined, with fares on the Bangkok-Shanghai Pudong route plunging by 71 per cent year-on-year.

-- BERNAMA