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Australian travel capacity to and from Asia is surging while the US slumps as a destination, according to international flight data.
Capacity between Australia and Asia has hit its highest-ever levels, according to Flight Centre’s SME arm Corporate Traveller, with India at 346 per cent of pre-COVID figures, Vietnam at 263 per cent, and South Korea at 153 per cent.
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Singapore, the Philippines, China, and Hong Kong, meanwhile, were all in the top 10 destinations for Australian business travellers last year. It comes as Australia moves to expand its bilateral air service agreements (ASAs), with Malaysia, Vietnam, and Hong Kong among the destinations seeing a boost to their permitted capacity.
According to Tom Walley, global managing director at Corporate Traveller, the data “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,” he said.
“Australian companies are capitalising on direct flights, improved frequency and better route networks across Asia.
“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.”
The record-breaking Asian travel figures stand in stark contrast to the US, where inbound travel from Australia dropped seven per cent year on year from March 2024 to 2025, according to data from the US International Trade Administration.
Graham Turner, chief executive of Flight Centre, attributed the decline to several factors, including disapproval for US President Donald Trump’s policies, concern about stricter border security procedures at US ports of entry, and economic factors.
“In that March quarter, our corporate business was down, was pretty flat, maybe up just a little bit on last year, whereas our leisure business was down a lot – but in April, it does appear to have got a lot worse, and I know our Canadian business, of Canadians going to the States, is down quite a lot,” he said on ABC’s The Business last week.
“It varies a bit, but I think the way it’s heading, April and May are going to be a lot worse for travel to the US in terms of numbers out of Australia. I was just talking to someone from G Adventures, and Intrepid, some more adventure tour operators, and they’re down 40, 50 per cent.
“Some people don’t like what Trump’s saying and doing. Other people are worried about border control and the conditions of coming into the US, and whether they’ve complied with everything. So, there’s a couple of reasons why that is down, particularly out of Australia.”
