New data finds the reason that airfares are soaring

Airfares have increased by almost 19 per cent over the past three years.

New data finds the reason that airfares are soaring

New data from the Bureau of Infrastructure, Transport and Regional Economics (BITRE) reveals that domestic airfares have increased by almost 19 per cent over the past three years – more than three times the rate of inflation.

The data shows that between August 2016 and 2019, domestic airfares increased by 18.6 per cent as airlines continued to constrain seat capacity.

Passenger numbers increased by more than four per cent over the same three-year period while the supply of seats has increased by only 0.3 per cent.

Australian Airports Association chief executive Caroline Wilkie said passengers should not have to keep paying more.

“The airlines should stop playing games with the public and start offering more affordable airfares,” Ms Wilkie said. 

“The domestic carriers are very quick to attack suppliers and aviation partners when they think they’re getting a raw deal, yet they’re happy to slug travellers with pricey, uncompetitive airfares – because they can.”

The BITRE data shows that total domestic passenger numbers have increased by 2.5 million over the past three years, while the number of extra seats made available by the airlines increased by just 265,000.

“This equates to one seat for every 9.5 additional passengers in the past three years. It’s about time the airlines did the right thing and opened up more seats to keep the cost of flying in Australia as affordable as possible,” Ms Wilkie said.

“The economy needs a boost right now and that could be assisted by increased domestic tourism if flights were more affordable.”

The Productivity Commission has confirmed airport charges make up a small portion of airfares and have little impact on the price of a ticket.

Have you taken a domestic flight recently? How much did it cost? Did you think it was good value for money?

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    COMMENTS

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    Tanker
    10th Oct 2019
    10:40am
    Domestic airfares are getting out of hand but then how else will airline CEOs get their massive bonuses?
    Tanker
    10th Oct 2019
    10:40am
    Domestic airfares are getting out of hand but then how else will airline CEOs get their massive bonuses?
    AutumnOz
    10th Oct 2019
    11:08am
    If the domestic airlines filled their planes it would lead to cheaper prices and be good for the environment as well.
    In past years we shopped when the stores were open and travelled at the time set for the train or the aeroplane to leave.
    Now people seem to want instant shopping, or travelling, which is not really necessary unless using travel to go to work.
    Chris B T
    10th Oct 2019
    11:13am
    I suppose solar power planes would bring Prices Down, until then Fuel Costs are the main Factor. Then all the other costs, just Reality.
    {;-(0)
    pedro the swift
    10th Oct 2019
    10:30pm
    Solar powered planes! What stupid idea! think about it. Planes crashing every time a cloud hid the sun! Overnight flights?Powered by moonlight no doubt! Wake up!
    Chris B T
    11th Oct 2019
    8:23am
    There is no alternative Fuel, so that is what the Comment Is About.
    Think about It @
    Eddy
    10th Oct 2019
    11:24pm
    I believe airfares today are quite reasonable when compared with other means of long distance travel. I suggest we have grown so used to cheap airfares we fail to realize they are unsustainable in the long term. In the 1960s my return airfare from east coast to west coast was about £300, by the RBA calculator this would be worth over $7000 today. As a single serviceman I did that trip several times (when I elected to convert my entitlement to a 5 Day each way train trip for a one day each way air trip and pay the difference). Nowadays I can do the same trip for less than $700. Reasonable value I think, compare the cost with the Indian Pacific.


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