Trends and insights that shape the industry

Indonesia’s Aviation Market: Emerging Stronger in a Post-COVID World

This paper is a follow-up to the white paper that we published in December 2021 – “Indonesia’s Aviation Market: Emerging stronger in a post-COVID world.” The initial paper analyzed how the pandemic has impacted the Indonesian market and the opportunities for Indonesian carriers to emerge stronger in the post-pandemic world. With borders now open again and all travel restrictions (both domestic and international) lifted, the market is now well on its way to recovering. 

Find out how the market is recovering and what the current challenges and opportunities are in this complimentary white paper update authored by Brendan Sobie and commissioned by IBS Software.


  • Domestic passenger traffic is now at about 80% of 2019 levels while the international market is now about one-third recovered and improving steadily.
  • Forecast:
    • Domestic air travel could reach 2019 levels by the end of this year.
    • International air travel could reach 50% of 2019 levels by the end of this year followed by a full recovery by the end of 2023.
  • Challenges currently faced by airlines:
    • Competition is intensifying on trunk routes as new airlines enter
    • Manpower and MRO constraints are making it difficult to ramp up operations
    • Some airlines are still restructuring
    • Regulatory and economic environments remain uncertain
  • Indonesian carriers need to be prepared to adapt to meet future passenger expectations, particularly in the areas of retailing as well as in contactless and digital technologies.