Why is Australia's Melbourne-Sydney Route the World's Most Lucrative?

Aviation data specialist OAG has released its annual analysis of the world's busiest flight routes.

The findings confirm the Asia-Pacific region’s dominance in air travel. Nine of the top ten busiest routes globally are located there. This highlights the region's strong recovery and domestic travel demand. The measure used is airline capacity, based on scheduled seats available. This is widely accepted as the definitive measure for the world's busiest flight routes.

The World's Busiest Air Corridor

For more than a decade, the top spot has been held by the Jeju International–Seoul Gimpo route. This short domestic hop in South Korea remains the world's busiest air corridor. It saw a massive 14.4 million scheduled seats in 2025.

The route covers a distance of just 243 nautical miles (450 kilometers). Seven different carriers operate on this intensely competitive sector. This high level of competition drives down airfares. OAG noted that average one-way fares on this route dropped to around $US44.

Other high-capacity routes in the OAG annual analysis include two Japanese domestic sectors. Sapporo New Chitose to Tokyo Haneda ranked second globally. Fukuoka to Tokyo Haneda followed in third place. Vietnam’s Hanoi to Ho Chi Minh City corridor ranked fourth worldwide.

Australia's Lucrative Domestic Route

Australia’s Melbourne-Sydney route (SYD-MEL) also made the global top ten. It was ranked as the sixth busiest route worldwide in 2025. The route saw close to 9 million scheduled seats in the year. This high domestic route capacity requires a massive number of daily flights. For example, on a single day, Qantas and Jetstar operated 51 flights from Sydney to Melbourne. Virgin Australia operated 21 flights on the same day.

Despite its sixth-place ranking by capacity, the Melbourne-Sydney route holds a more significant title. It is the world’s most lucrative flight route by revenue.

The Revenue Anomaly

According to data published by Visual Capitalist in April 2024, the Sydney-Melbourne sector generated $US1.21 billion in ticket revenue. This figure was recorded in just the first half of 2023. This revenue was more than double the pre-pandemic levels. This surge occurred even as the total number of passengers declined.

This domestic Australian route generated more revenue than major international routes. It surpassed the New York (JFK) to London (LHR) route, which earned $1.15 billion in the same period.

Why the Melbourne-Sydney Route is So Expensive

Several factors contribute to the high revenue and cost of the Melbourne-Sydney route revenue.

• Market Structure: The route is largely dominated by two major airline groups. Qantas and the Virgin Australia Group control the majority of the market share. This creates a highly profitable environment for the carriers. Qantas, which also includes Jetstar, achieved record-breaking domestic earnings margins in 2023.
• Business Travel Demand: Both Sydney and Melbourne are major financial centers. The route sees a significant number of high-yield business class travelers. These travelers often book late, paying premium fares. The high volume of business traffic ensures a steady flow of high-priced tickets.
• Lack of Alternatives: Australia lacks a high-speed rail network. The alternative train journey between the two cities takes approximately 11 hours. This makes air travel the only viable option for fast, efficient travel. This creates a captive market for airlines.
• Airport Constraints: Sydney Airport (SYD) operates with a mandatory curfew. This limits the total number of flights that can operate daily. This constraint on domestic route capacity can help maintain higher prices.

The contrast between the world’s busiest route and the most lucrative is stark. The South Korean route features intense competition and low fares. In contrast, the Australian route, despite being highly competitive in frequency, yields exceptional revenue for its carriers. This is due to the unique market dynamics and lack of high-speed rail alternatives.

For more insights into global aviation trends, visit our commercial aviation news section. (https://flying.flights)

The data underscores the importance of domestic Asia-Pacific air travel in the global market. It also highlights the impact of market structure on ticket pricing for consumers.