Flight capacity between Australia and Asia has surged to the highest levels seen globally, significantly outpacing the international average, which currently sits at 103 per cent of pre-pandemic levels. According to our new data,^[1] India’s capacity is now at 346 per cent of pre-COVID figures, with Vietnam at 263 per cent and South Korea at 153 per cent. 

These record-breaking figures point to a strong recovery in corporate travel and reflect deepening trade ties, as evidenced by Australia’s two-way trade with ASEAN nations reaching $192.9 billion, surpassing trade with both the US and the EU. ^[2]

Tom Walley, our Global Managing Director, says the shift is significant for Australian corporates. “It highlights how airlines are racing to keep pace with the popularity in Australia–Asia business. Direct routes are increasing, codeshare agreements are multiplying, and we’re seeing renewed demand for premium cabins, as carriers boost seat capacity to keep pace with intensifying trade ties and the renewed emphasis on face-to-face engagement across the region.”

Our data also shows Singapore at 107 per cent of pre-pandemic capacity and Indonesia at 128 per cent, further cementing both markets as important gateways into Asia and top corporate travel destinations. In fact, Singapore, the Philippines, China, and Hong Kong all rank in the top 10 international destinations for Australian business travellers in 2024, while Indonesia, Vietnam, South Korea and India fall within the top 20. 

Vietnam has emerged as one of Australia’s fastest-growing trade partners, with bilateral trade climbing by 10 per cent year-on-year^[3], while India’s rising economic ties^[4] with Australia have propelled capacity still further. The recent codeshare arrangement between Air India and Virgin Australia has added more seats on direct routes, allowing faster connectivity between the two countries.^[5]

• Global trade realignments fuelled by US-China tensions may also drive more Australia organisations to pivot toward Southeast Asia.^[6] Tom says, “Broader global trade dynamics could see the capacity trend continue as U.S. trade policies under the Trump administration put pressure on traditional supply chains, with businesses turning to Asia to explore new trade opportunities.^[7]”
• Meanwhile, business class travel is experiencing a sharp uptick. Flight Centre’s Travel Group corporate brands have recorded a 45 per cent increase in international business-class bookings out of Australia in the second half of 2024, compared with the same period in 2023.
• Demand for premium cabins into Hong Kong shot up by 60 per cent, with China close behind at 57 per cent growth, indicating that higher-end corporate travel is not just rebounding but expanding. One in four corporate travellers flying between Australia and Hong Kong now chooses business class, and more than one in five are doing the same on routes to China.

Recent policy changes in China have added to the momentum. After Beijing extended its visa-free entry from 15 to 30 days on 30 November 2024,^[8] we identified a 21 per cent jump in Australian corporate travel to China, with average trip durations also trending longer. Tom suggests this combination of softening visa policies, competitive airline offerings, and robust trade figures places Asia firmly at the centre of Australia’s corporate travel landscape.

“Australian companies are capitalising on direct flights, improved frequency and better route networks across Asia,” Tom says. “Bilateral trade figures with India, Vietnam and other ASEAN economies are going up, and we see a clear link between stronger commercial ties and airlines prioritising the Australia–Asia corridor.”

Our insights reflect the broader national trend that has ASEAN emerging as Australia’s second-largest two-way trading partner.^[9] With airlines continuing to invest in larger aircraft and upgraded cabins including Jetstar’s multi-million-dollar Dreamliner overhaul,^[10] there are more options than ever to tap into Asia’s growing economic opportunities. As competition intensifies among airlines, routes are forecast to become even more competitive, providing Australian businesses with greater connectivity, efficiency, and choice in their corporate travel plans.

_{[1] Tracking seats available across all carriers}

About Flight Centre Travel Group

The Flight Centre Travel Group is one of the world’s largest travel retailers and corporate travel managers. The company, which is headquartered in Brisbane, Australia, has company-owned leisure and corporate travel business in dozens of countries, spanning Australia, New Zealand, the Americas, Europe, the United Kingdom, South Africa, the United Arab Emirates, and Asia. ASX listed Flight Centre Travel Group (FLT) also operates the global FCM corporate travel management network, which extends to more than 100 countries through company-owned businesses and independent licensees, along with Corporate Traveller, the flagship business specific to the small-to-medium-sized enterprise sector. For more information, visit fctgl.com.