Australian airports are bracing for one of their busiest summer travel seasons ever, as soaring domestic and international demand continues to outpace capacity across the network.
The surge comes as the ACCC’s latest Domestic Airline Competition in Australia – December 2025 report shows passenger numbers in September and October reached their second-highest level since 2019, underscoring the strength of the recovery.
Load factors remain at record territory, averaging 84.4 per cent in October – one of the highest monthly figures since the ACCC began monitoring the market. The watchdog also confirmed domestic aviation is now one of Australia’s most concentrated industries, with just two airline groups commanding 98.4 per cent of market share.
Industry leaders say the combination of booming demand and limited competition is putting mounting pressure on Australia’s aviation system.
Australian Airports Association (AAA) CEO Simon Westaway said the findings highlight the need for continued transparency, calling for the ACCC’s aviation monitoring program to be funded beyond its current expiry in December 2026.
“For the integrity of the aviation industry and the consumer, it is vital the ACCC’s airline monitoring report is funded by the Commonwealth beyond December 2026 to ensure continued transparency and support a fair and efficient market as demand grows,” Westaway said.
He noted airports are responding to the sustained demand with more than $44 billion in planned infrastructure investment over the next decade to bolster capacity and improve the traveller experience.
“The coming summer is expected to be one of the busiest ever, especially at international terminals nationwide, making continued progress on border modernisation essential,” he said.
Westaway urged the government to accelerate digital upgrades to border processing, including fast-tracking the expansion of the digital incoming passenger card and advancing biometric technology to replace ageing kiosks.
Recent AAA consumer research shows strong public backing for passport-less biometric processing at international airports, mirroring systems already in place at major global hubs including Singapore Changi and Dubai International.
