Oceania Airlines: 1Q25 vs. 1Q24 – Performance Analysis & Trends |

The first quarter of 2025 brought growth and challenges for airlines operating in the Oceania region. While some carriers expanded their operations, others saw declines in the number of flights, seat capacity, and Available Seat Miles (ASMs) compared to 1Q24. This article provides a detailed comparison of 1Q25 vs. 1Q24, analyzing the performance of the top 10 Oceania airlines based on the three key metrics. Moreover, we also highlight the latest industry trends, discussing what factors influenced airline performance and what to expect in the coming months. Overall Market Overview The Oceania airline market saw mixed performance in Q1 2025, with some airlines cutting capacity while others expanded. The overall demand remained stable, but specific segments—primarily regional aviation—faced notable reductions in flights and capacity. Key takeaways include: Qantas and Air New Zealand saw declines in flights and seat capacity, signaling a more cautious approach to network expansion. Jetstar and Hinterland Aviation reported notable growth, particularly in ASMs, showing signs of increased long-haul or high-demand operations. Regional Express (Rex) saw the sharpest decline, losing over 60% of its seat capacity and 78% of its ASMs. Smaller carriers like Sounds Air and Hinterland Aviation showed double-digit growth, indicating a strong demand for niche routes. [caption id="attachment_31039" align="alignnone" width="640"] Qantas 787[/caption] 1. Qantas 1Q25: 62,333 flights | 8,583,937 seats | 10.32 billion ASMs 1Q24: 64,978 flights | 8,639,959 seats | 10.19 billion ASMs YoY Change: Flights (-4.1%), Seats (-0.6%), ASMs (+1.2%) Qantas reduced flights in 1Q25, but its ASMs rose modestly, suggesting a strategic shift to longer-haul or higher-margin routes. This aligns with the group’s ongoing focus on cost control and premium yield growth amid domestic market softness. While revenue remains stable, Qantas is under pressure from rising operating costs, particularly fuel and wages, which has squeezed short-term profitability. Moreover, the airline is positioning itself for recovery with a tight grip on capacity and a long-haul push, supported by Project Sunrise and continued international network restoration. 2. Air New Zealand 1Q25: 41,429 flights | 4,550,302 seats | 4.60 billion ASMs 1Q24: 43,309 flights | 4,761,948 seats | 4.86 billion ASMs YoY Change: Flights (-4.3%), Seats (-4.4%), ASMs (-5.3%) Air New Zealand’s Q1 reductions across all metrics reflect a deliberate retrenchment, likely driven by cost containment and underperforming long-haul routes, especially to North America. The airline flagged weaker international demand and higher fuel costs in its recent outlook, and the data confirms efforts to recalibrate the network. Profitability is likely under pressure, and the airline may be in a holding pattern before re-expanding. The strategic focus appears to be on fortifying core trans-Tasman and Pacific markets while keeping a lid on broader international exposure. [caption id="attachment_28570" align="alignnone" width="640"] Air New Zealand Boeing 787-9[/caption] 3. Virgin Australia 1Q25: 36,788 flights | 5,939,162 seats | 4.88 billion ASMs 1Q24: 36,669 flights | 5,900,724 seats | 4.86 billion ASMs YoY Change: Flights (+0.3%), Seats (+0.7%), ASMs (+0.3%) Virgin Australia’s slight growth in flights and capacity suggests a measured, deliberate recovery strategy as it continues to rebuild following its 2020 administration. The airline is focusing on network resilience and margin stability, targeting domestic business routes and profitable leisure corridors. While profitability figures have not been publicly disclosed, the airline’s conservative growth hints at a desire to consolidate gains before expanding further, particularly in a competitive domestic market dominated by Qantas and Jetstar. 4. Jetstar 1Q25: 30,828 flights | 6,203,902 seats | 6.37 billion ASMs 1Q24: 29,566 flights | 5,886,403 seats | 5.76 billion ASMs YoY Change: Flights (+4.3%), Seats (+5.4%), ASMs (+10.6%) Jetstar posted the strongest growth among major carriers, especially in ASMs, reflecting an aggressive push on longer leisure routes, likely supported by high load factors and sustained demand for affordable international travel. The airline benefits from a low-cost base, making it better positioned to withstand input cost volatility. With its fleet renewal underway and more A321neos joining soon, Jetstar is clearly investing in international growth, particularly in Southeast Asia and the Pacific. While margin pressures exist, the scale of growth suggests confidence in near-term profitability and competitive edge. [caption id="attachment_58075" align="alignnone" width="640"] Jetstar A321XLR[/caption] 5. Regional Express (Rex) 1Q25: 12,201 flights | 417,494 seats | 97.82 million ASMs 1Q24: 16,251 flights | 1,079,653 seats | 446.04 million ASMs YoY Change: Flights (-24.9%), Seats (-61.3%), ASMs (-78.1%) Rex’s dramatic reduction in flights, seats, and ASMs points to significant financial and operational challenges. The airline has cited volatile fuel prices, higher leasing costs, and subdued demand in key regional routes as reasons for cutbacks. Moreover, its foray into capital city jet markets has not yielded the scale anticipated, and profitability has been under pressure, with recent reports suggesting cash burn and route rationalization. The contraction seen in 1Q25 is indicative of an airline in retrenchment mode, focusing on core regional strengths to regain financial footing. 6. Air Niugini 1Q25: 6,308 flights | 665,191 seats | 377.35 million ASMs 1Q4: 6,854 flights | 656,050 seats | 351.49 million ASMs YoY Change: Flights (-8.0%), Seats (+1.4%), ASMs (+7.4%) Air Niugini reduced flights but increased capacity, highlighting the use of larger aircraft or route restructuring to consolidate operations. The airline is navigating fleet renewal delays and infrastructure limitations, particularly at key hubs. While ASMs increased, profitability remains uncertain, as the carrier grapples with high operating costs and regional competition. Air Niugini’s near-term outlook hinges on fleet modernization efforts and improving operational reliability, both of which are essential for restoring margins. 7. Fiji Airways Q1 2025: 6,175 flights | 677,256 seats | 1.21 billion ASMs Q1 2024: 6,084 flights | 656,429 seats | 1.19 billion ASMs YoY Change: Flights (+1.5%), Seats (+3.2%), ASMs (+1.4%) Fiji Airways recorded moderate growth across all indicators, in line with its position as a regional international carrier benefiting from strong inbound tourism, particularly from Australia, New Zealand, and the US. Moreover, the airline has maintained tight cost controls and high load factors, leading to a positive earnings outlook. Fleet expansion through new A350s is helping improve efficiency and margins. The steady Q1 performance reflects strategic growth without overextension, pointing to stable profitability in the near term. [caption id="attachment_75105" align="alignnone" width="640"] Virgin Australia 737 8 ready for delivery in Seattle[/caption] 8. Air Tahiti 1Q25: 5,763 flights | 326,178 seats | 62.19 million ASMs 1Q24: 5,357 flights | 307,613 seats | 59.97 million ASMs YoY Change: Flights (+7.6%), Seats (+6.0%), ASMs (+3.7%) Air Tahiti’s increase in flights and capacity is supported by stable demand for inter-island travel within French Polynesia. Its network plays a vital role in domestic mobility, and recent trends suggest rising local tourism and improved economic activity. Despite higher operating costs typical of island-based carriers, the airline is expected to remain operationally stable, with recent figures pointing to strong load factors and controlled capacity expansion. 9-10. Sounds Air & Hinterland Aviation Sounds Air: Flights (+10.4%), Seats (+11.4%) Hinterland Aviation: Flights (+64.4%), Seats (+64.4%), ASMs (+54.2%) The substantial growth of these two regional carriers highlights the rising demand for regional connectivity. Notably, percentage-wise, Hinterland Aviation recorded the most substantial expansion in the region. While profitability details are limited, the scale of growth suggests strong revenue streams and a solid operational foundation. The outlook appears positive as long as the airline maintains fleet availability and service reliability. Key Trends Shaping Oceania’s Airline Industry The Rise of Low-Cost Carriers (LCCs): Jetstar’s strong growth signals increasing passenger preference for budget airlines. The airline’s capacity expansion suggests it capitalizes on price-sensitive travelers seeking affordable domestic and international options. Regional Airlines Under Pressure: Rex's struggles highlight ongoing challenges for regional airlines, including competition from larger carriers and operational cost pressures. However, Hinterland Aviation’s expansion suggests opportunities for niche players in underserved markets. Strategic Route Adjustments: Qantas and Air New Zealand appear to be optimizing routes rather than expanding aggressively. While Qantas improved ASMs despite fewer flights, Air New Zealand’s reductions suggest efforts to streamline operations and focus on profitability. Fiji Airways and Air Niugini recorded moderate ASM growth, indicating steady demand for international travel. However, the uneven recovery reflects lingering global economic uncertainties and fluctuating travel patterns. Moreover, the coming quarters will reveal whether these trends continue or if market dynamics shift again. Airlines must balance capacity, demand, and operational efficiency to navigate the changing environment successfully. Data Source: Cirium

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