The APAC region has emerged as the world’s most competitive aviation market in 2025, surpassing its 2019 total capacity by 0.5%, according to OAG's latest report.
Both domestic and international sectors show significant growth, with domestic recovery particularly strong, reflecting the region’s ongoing resilience in the face of global challenges.
The ‘Is Asia Pacific the World’s Most Competitive Aviation Market?’ report reveals that domestic capacity across APAC is now 4.7% above 2019 levels. This marks a significant milestone in the region's aviation recovery, with countries such as China and India leading the charge. Domestic capacity in China is now 14% above pre-pandemic levels, while India has achieved a 13% increase. These two countries, alongside Japan and Indonesia, collectively account for more than 100 million domestic seats each.
Despite strong domestic growth, some countries are facing challenges in returning to pre-pandemic levels. Japan’s domestic capacity remains 4% behind 2019 levels, with socio-economic factors cited as the primary constraints on recovery. Similarly, Indonesia has experienced a slower rebound, with its domestic market 17% behind 2019. Ongoing supply chain issues have contributed to this lag, as 27% of the country’s aircraft are currently out for maintenance or storage.
Internationally, the APAC region has made notable strides, with 594.8 million international seats available, making it the second-largest international aviation market globally. Although this figure still falls short of 2019 levels, the region now accounts for one in every four international seats worldwide.
Among the leaders in international seat capacity are Singapore Airlines, Cathay Pacific, and China Eastern. Notably, Singapore Airlines is one of three Asia Pacific carriers within the top 10 for international capacity that has surpassed its 2019 levels, offering 14.1% more capacity in 2024 compared to 2019. The other two carriers achieving this are Scoot (+13.8%) and EVA Airways (+4.5%).
The report shows a significant decline in airfares across the region, driven by a rapid expansion in capacity and increased competition. Average ticket prices have dropped in 17 of the 20 largest growth markets, with some routes experiencing reductions of over 20%. For instance, the Bangkok-to-Shanghai Pudong route saw a remarkable 71% reduction in ticket prices year-on-year.
Mayur Patel, head of Asia Pacific at OAG, commented on the findings, 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.”