AviationRecord air capacity between Australia and Asia is driven by the growing demand for corporate travel.

From Asia to Down Under, flight capacity hits record highs

Apr 28, 2025

Flight capacity between Australia and Asia has surged, driven by stronger trade ties and rising corporate travel, with India, Vietnam, and South Korea seeing significant growth. Photo Credit: Adobe Stock/Jonathan

Recent data from Corporate Traveller reveals a significant surge in flight capacity between Australia and key Asian markets. India, Vietnam, and South Korea have all seen impressive increases, with India’s capacity now at 346% of pre-pandemic levels. These increases come in response to growing demand from both corporate and leisure travellers, spurred by strong economic ties.

Australia’s strengthening trade relations with Asia

The surge in flight capacity aligns with a notable rise in Australia’s trade with ASEAN nations, which has reached US$192.9 billion – surpassing trade with both the US and the EU. As trade continues to deepen, more direct flight routes are being introduced to meet the growing demand for business travel.

Growing demand for business travel

Corporate Traveller’s data shows a sharp rise in business-class bookings, with a 45% increase in international bookings from Australia during the second half of 2024 compared to the previous year. Routes to Hong Kong and China are particularly seeing a rise in premium travel, with business class demand up by 60% and 57%, respectively.

New airline partnerships enhance connectivity

Airlines are responding to the growing demand with new codeshare agreements, such as the one between Air India and Virgin Australia. This partnership has added more direct flight options, allowing for faster and more convenient travel between Australia and India, further boosting corporate connectivity.

Impact of changing visa policies on travel patterns

China’s recent extension of visa-free entry for Australian business travellers has also contributed to a rise in corporate travel. Corporate Traveller reports a 21% jump in travel to China, with longer trip durations now trending as businesses take advantage of the new visa policies.

A competitive airline landscape ahead

With the rising demand for travel to Asia, airlines are investing in larger aircraft and upgraded services. This competition is expected to further increase connectivity and offer Australian businesses more options for corporate travel, making the Australia-Asia corridor even more important for international trade and business.