Record numbers of Australians are traveling overseas despite ongoing uncertainty caused by the Middle East crisis, with Sydney Airport reporting its strongest first quarter for international travel on record.
Record Passenger Numbers
Approximately 4.57 million passengers passed through Australia's busiest international terminal in the first three months of 2026, representing a 5.8% increase compared to the same period in 2025. Melbourne Airport also surpassed one million international travelers for the first time in March, while Adelaide Airport recorded 99,776 international passengers in March, a 26.5% year-on-year increase.
Key Markets
New Zealand and China were Sydney Airport's largest international markets during the quarter, with passenger volumes rising by 13.5% and 14.0% respectively compared to Q1 2025. Travel to and from Hong Kong also increased by 21.4%.
Sydney Airport CEO Scott Charlton commented: "This quarter's record international growth is a great outcome, particularly given the disruption in the Middle East, where many airlines have faced significant operational impacts since late February." He added that "growth across China and broader Asia is increasingly supporting travel into Europe, helping to offset softer conditions in parts of the Middle East."
Impact of Middle East Conflict
Mr. Charlton warned that the conflict will have a larger effect on next quarter's figures, with the Strait of Hormuz still blocked. Since the conflict broke out, jet fuel supplied by the Middle East and refined in Asia before being sold to Australia has risen more than 150%, forcing airlines to cancel some routes or increase prices. Qantas and Virgin Australia are understood to have about six weeks' worth of jet fuel reserves.
However, Mr. Charlton noted: "From a fuel perspective, the outlook remains stable and consistent with government guidance. There are no current indications of fuel supply constraints impacting airline planning or near-term operations at Sydney Airport." He concluded: "Everything we have seen so far suggests the aviation market continues to demonstrate adaptability and Sydney Airport is well positioned to support growth as conditions evolve."
