Melbourne Airport domestic passengers still down on 2019

The results highlight Australian aviation’s stuttering recovery from the pandemic, with a combination of cost-of-living pressures and a reduction in business travel stagnating domestic travel.

During FY25, Melbourne welcomed 24,198,000 domestic passengers through its terminals, an increase of 0.4 per cent on the previous year.

That number, though, was still down 1,756,000 on FY2018–19, the last full financial year before COVID-19. Internationally, numbers hit a record 11,953,000.

“Since the pandemic, we are seeing people prioritising travel and connections as essential parts of their family budgets, and today’s financial year numbers reflect that,” Lorie Argus, chief executive of Melbourne Airport, said.

The news comes at the same time as the airport announced Hong Kong Airlines would launch three times weekly flights from Melbourne to Hong Kong in December.

The airline becomes the 39th international carrier to be based at the airport, while the new service will operate using A330s, adding 93,000 seats. Hong Kong Airlines will add to competition on the route from Qantas and Cathay Pacific.

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“Hong Kong is one of the largest international markets for us at Melbourne Airport, so I expect there will be strong demand for the service,” Argus said.

“The aviation landscape is highly competitive and without the work of the Federal Government to expand bilateral air traffic rights between Hong Kong and Australia, along with the great support of the state government and Visit Victoria, we wouldn’t be standing here today.”

Last month, Australian Aviation reported how more than a million fewer international travellers visited Australia last year compared to pre-pandemic 2019, according to the latest government figures.

New research from Tourism Research Australia has revealed that, despite the decrease, spending by the 8.3 million visitors reached a record $32.9 billion, driven in part by overseas students and backpackers.

“In 2024, Australians continued to prioritise travel and demand for domestic trips remained high, particularly short trips close to home,” Grant Ferres, head of Tourism Research Australia, said.

“However, overall growth was muted and travellers adjusted spending patterns in light of household financial pressures. On the international side, there was continued growth in arrivals from many source markets, with key markets in our region standing out.”

Key statistics outlined in TRA’s ‘Australia’s visitor economy in 2024’ include that Australia’s visitor economy welcomed 15 per cent more international visitors than in 2023, hosted more domestic overnight trips, and sustained a record high number of filled tourism jobs and tourism businesses.

You can read the report in full here.