Newcastle lord mayor Nuatali Nelmes says an estimated 100,000 people watched last weekend's air show over the city's beaches and at Williamtown RAAF base.
The crowd was split over Sunday's ground show, which attracted about 25,000 people to Williamtown, and spectators who watched Saturday's aerial display off Nobbys beach.
"Newcastle's coastline made a spectacular debut at the one-off community event with aviation enthusiasts and families turning out in droves at Nobbys beach, Foreshore Park and Stockton to catch a glimpse of the thrilling aerial displays and flypasts," Cr Nelmes said in a statement.
"Newcastle continues to shine as a destination thanks to council's ongoing strategic investment into major events like Newcastle Williamtown Air Show 2023.
"Attracting major events like this is a testament to Newcastle's growth as a world-class events and cultural city and indicative of a thriving local economy."
Hunter Business chief executive Bob Hawes said a range of businesses across the region had enjoyed a surge in trade.
"It was once again an opportunity for Newcastle to showcase its ability to host large-scale events, and the events across the weekend did demonstrate the depth they have in supporting business activity," he said.
"I understand all the hotels were full, but it wasn't just the hospitality sector receiving dividends; it was transport and logistics, retailers and a range of defence-related businesses that had the opportunity to showcase their wares."
He said Saturday's $1 million The Hunter race at Newcastle Jockey Club had also contributed to the "vibe" and provided an economic boost across the city.
"We heard it was also difficult to get bookings at some restaurants due to the local influx," he said.
"The fact that the air show was free hopefully also meant people felt they had a spend capacity to support the retailers and hospitality businesses."
