State of Aviation in Australia and New Zealand: 2024 Overview

1. Passenger Traffic Recovery and Growth

2024 has seen a strong rebound in air traffic as borders remain open and pent-up travel demand is unleashed. Following years of disruption, Australia and New Zealand have benefited from the resurgence in international and domestic travel, supported by increased leisure and business travel. According to IATA forecasts, global aviation is expected to fully recover by 2025, but the Oceania region has outperformed these expectations, with many airports reporting traffic levels approaching pre-pandemic volumes.

Australia’s major airports, including Sydney, Melbourne, and Brisbane, have been working at near-capacity, while New Zealand’s Auckland Airport has recorded a notable uptick in trans-Tasman travel.

2. Challenges in Operational Capacity

Despite strong demand, operational challenges have surfaced. Labour shortages continue to impact ground services and airline staffing, with many employees having exited the industry during the pandemic.

Airports are also grappling with congestion, as infrastructure developed before the pandemic is now under strain from the rapid recovery, particularly throughout regional Australia, underscoring the need for investment in infrastructure and modernisation.

With the influx of passenger activity and resourcing demands, airports are increasingly looking to automation as a means to aid passenger flow and alleviate pain points.

The Asia Pacific region is projected to experience the fastest growth in passenger traffic globally, with an annual increase of 4.5% from 2019 to 2040. By 2040, the region’s passenger numbers are expected to exceed 4 billion, accounting for over half of global demand. This rapid growth highlights the region’s expanding role in the aviation industry, positioning it as a critical hub for future air travel.

3. Sustainability and Green Aviation Initiatives

Sustainability is at the forefront of aviation agendas across Australia and New Zealand. Both countries are increasingly committed to achieving net-zero carbon emissions by 2050, aligning with international aviation targets.

Australia is advancing its roadmap to sustainable aviation fuel (SAF) usage, with plans to increase the production and use of SAF to 10% by 2030. New Zealand’s aviation industry is similarly focused on decarbonisation. Additionally, there are growing calls for more carbon offset programs and electrification of ground services at airports across both nations.

In other areas of the airport, such as baggage handling, initiatives are underway to incorporate non-carcinogenic materials in the production process to minimise hazardous waste. Additionally, high-efficiency motors and energy-saving features in control systems are being utilised to reduce power consumption.

A recent industry report stated that in 2024, 64% of passengers are willing to pay up to 10% more on their ticket price to offset carbon emissions, up from 53% in 2023. Only one in seven would not pay anything extra, while a growing number are open to spending 30% or more. Younger and female travellers show a significantly higher willingness to contribute. Despite economic pressures, the average additional amount passengers are willing to pay remains at 10.8%. Moreover, 58% would accept a longer flight for a 25% lower carbon footprint, and 81% are willing to travel lighter to reduce emissions, reflecting a strong commitment to sustainable aviation.

4. Technological Innovations in Airports and Passenger Experience

The rise of digital transformation is shaping the future of aviation in Australia and New Zealand. Technologies like biometrics, AI-powered customer service, and automated baggage handling systems are enhancing operational efficiency and passenger experiences.

Self-service technologies are becoming more prominent, driven by the shift towards touchless travel experiences. This includes increased use of mobile apps for ticketing, baggage check-ins, and security clearances. The success of these initiatives has led to a strong push towards end-to-end digital solutions in both nations.

The continued rise of self-service kiosks, automated bag drop solutions, and mobile check-ins have transformed the passenger experience. Airports are investing in scalable technologies to meet the evolving needs of both airlines and passengers. Daifuku’s self-bag drop solutions have been a pivotal technology adopted by airports in both Australia and New Zealand to improve throughput and reduce congestion.

The success of these initiatives has led to a strong push towards end-to-end digital solutions in both nations.

5. Regulatory and Government Initiatives

The governments of both countries have been proactive in addressing aviation challenges. In Australia, the Civil Aviation Safety Authority (CASA) continues to regulate operational safety while simultaneously promoting innovation.

Investment in Infrastructure: The Australian and New Zealand governments have announced several infrastructure investments in 2024, focusing on expanding airport capacity and supporting regional connectivity. Notable investments include upgrades to regional airports in New South Wales, Queensland, and South Australia. New Zealand’s Ministry of Transport has also allocated funds for regional airport development, enhancing domestic travel opportunities and supporting the tourism sector.

The Australian Government’s Aviation White Paper Towards 2050 announced a $40 million investment over three years to extend the Regional Airports Program. This funding will enhance safety and connectivity at regional airports while expanding to support infrastructure upgrades at regional aerodromes, preparing them for future demands.

The aviation sectors in Australia and New Zealand are entering a new era of innovation and recovery. While challenges such as labour shortages and infrastructure constraints persist, the region is embracing cutting-edge technology and sustainability initiatives to position itself for long-term success. With growing passenger demand, a focus on green aviation, and a commitment to future-proofing infrastructure, Australia and New Zealand are set to play a pivotal role in shaping the future of global aviation.

References:

• IATA, “Air Passenger Forecasts 2024.”
• IATA, “Global Outlook for Air Transport – A local sweet spot”
• IATA, “Digital Transformation in Aviation 2024.”
• SITA, “Passenger IT Insights”
• Auckland International Airport, “Passenger Traffic and Infrastructure Report 2024.”
• Australian Airports Association, “Western Sydney International Airport: Project Overview.”
• Sustainable Aviation Fuels Australia, “SAF Targets and Roadmap.”
• The Australian Government’s “Aviation White Paper Towards 2050”
• Aviation Australia, “Challenges and Growth Opportunities: Talent and Supply Chain 2024.”