The show, which ran from 28 February to 5 March, beat its 2015 attendance by 40,000 people.
Airshow CEO Ian Honnery said in terms of quality and attendance, the show ranks among the very best in major events in Australia.
"The public has voted with its feet and has embraced the undeniable excitement and colour of our event," said Honnery.
"We're over the moon that so many people came to Avalon to experience one of our biggest and best airshows ever.
"We are a cock-a-hoop that so many people joined us in celebrating the arrival of Australia's new Joint Strike Fighter and the cavalcade of modern military aircraft on display.
"We had very high expectations leading up to this Airshow and it has delivered in spades."
Honnery also said the event appears to be broadening its appeal to a larger audience.
"Never before have I seen so many young families with children among the crowd," he said.
"As a science and technology showcase we are second to none, and the educational [aspect] should not be underestimated.
"I am delighted to see so many of the next generation of airshow fans experiencing the excitement of aviation while at the same time gaining an insight into the cutting-edge technology of the aerospace industry."
Honnery also added that the not-for-profit foundation that organises the airshow would not be resting on its laurels.
"We're starting work almost immediately on our next airshow scheduled for 2019," he said.