iscover
Australia’s aviation sector proved “resilient and adaptable” in the 2025-26 financial year despite the Iran war, a new report has found.
In its Australian Aviation Network Overview report for June 2026, Airservices Australia found that total network passenger flights were up 1.5 per cent and volumes up 2.7 per cent over FY25, with industry performance and Airservices’ own performance also improving.
This content is available exclusively to Australian Aviation members.
A monthly membership is only $5.99 or save with our annual plans.
- Australian Aviation quarterly print & digital magazines
- Access to In Focus reports every month on our website
- Unlimited access to all Australian Aviation digital content
- Access to the Australian Aviation app
- Australian Aviation quarterly print & digital magazines
- Access to In Focus reports every month on our website
- Access to our Behind the Lens photo galleries and other exclusive content
- Daily news updates via our email bulletin
- Unlimited access to all Australian Aviation digital content
- Access to the Australian Aviation app
- Australian Aviation quarterly print & digital magazines
- Access to In Focus reports every month on our website
- Access to our Behind the Lens photo galleries and other exclusive content
- Daily news updates via our email bulletin
“Despite significant disruptions to global aviation from the Middle East conflict, passenger volumes grew by three per cent compared to FY25, driven by robust leisure travel, continued resource sector activities, and seven per cent growth in international flights,” the report read.
“18 December 2025 was the busiest day since 2019. General aviation, particularly flight training, experienced steady three per cent year-on-year growth.
“While growth softened in the final quarter as airlines responded to fuel price volatility, supply chain constraints and market uncertainty, it was pleasing to see the industry continuing to adapt.
“With 117 new aircraft entering into the network, airlines are able to meet demand through higher aircraft utilisation and consistently strong load factors.”
Industry on-time performance improved from 76 to 77 per cent between FY25 and FY26, according to the report, with cancellations also dropping from 2.5 per cent to 2.3 per cent and our airlines now ranking “among the world’s top performers”, according to Airservices.
“Driven by stronger operational resilience and deeper collaboration across the sector, including the sharing of lessons learned following disruptions, these results reflect the aviation industry’s collective commitment to reliability and continuous improvement,” the report read.
In addition, despite a handful of well-publicised disruptions caused by ATC staffing issues, Airservices said its performance reached the best levels in half a decade.
“Air traffic service outcomes reached their highest level in the last five years, with service variations reduced by 86 per cent year-on-year and Airservices-attributable ground delays falling by 13 per cent year-on-year to less than 0.1 per cent of total network delays,” the report read.
“While this improving trend is pleasing to see, strengthening resilience across the network remains a key priority, particularly at Sydney.
“This effort is underpinned by an enhanced workforce capability, with a record number of air traffic controllers now in service following the introduction of 109 new controllers during FY26, additional staff progressing through the training pipeline, and ongoing efforts in strengthening all aspects of service resilience.”
The air traffic management provider earlier this year signalled it is looking to increase fees to airlines by 12 per cent per year over the next five years as revenue drops.
Want to see more stories from trusted news sources?
Make Australian Aviation a preferred news source on Google.
Click here to add Australian Aviation as a preferred news source.
