Domestic airfares hit 15-year high as ACCC puts airlines on notice

The ACCC anticipates that price intensity will drop slightly after the Christmas period, but will remain at unusually high levels well into 2023.

Despite flight cancellations returning to almost pre-pandemic levels, passengers are still experiencing regular delays, with Jetstar and Virgin Australia the worst for delayed arrivals in October 2022. However, the Qantas Group announced in late October it would be investing a further $200 million across Qantas and Jetstar to improve its performance.

“The airlines have significantly improved their reliability following historic lows over winter; however, flights are still regularly delayed,” Brakey said. “As we are heading into the summer holidays, the airlines have told us they are keeping additional crew and aircraft on standby to help minimise delays.”

High prices, delays and cancellations aside, the number of bookings indicates Australians are eager to return to domestic and international travel, with more than 4.7 million passengers boarding a plane in October.

There are hopes that low-cost airline Bonza, which aimed to start flights in October 2022 but remains on the ground with the Civil Aviation Safety Authority yet to sign off on its operations, will bring some airfare price relief when it takes off, with a new competitor easing the strain on the domestic market.

“In the current climate of high airfares, competition is more important than ever in helping to constrain prices, and giving consumers more choice,” Ms Brakey said.

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