SYDNEY, Dec 7 (NNN-AAP) – Though demand for air travel remains strong in Australia, the country’s consumer watchdog has found that, domestic airlines continue to hold back adding capacity to the market, lifting average airfares higher than they have been in years.
In its quarterly report published yesterday, the Australian Competition and Consumer Commission (ACCC) revealed that, with strong demand, reduced capacity and ongoing high prices for jet fuel, domestic airfares are higher than they have been in years, and also higher than pre-pandemic levels.
According to the report, average revenue per passenger, an indication of average airfares across all fare types, was 27 percent higher in Oct this year, than in Oct, 2019.
The discount economy fares are particularly high, as airlines don’t need to offer sales to fill their planes, given the strong demand for air travel.
The report pointed out that an index of the discount economy fares across Australia’s top 70 domestic routes in Nov, was more than double what it was in April when it hit an 11-year low.
Meanwhile, flexible economy and business airfares have not increased as much as discounted fares, remaining below pre-COVID-19 prices.
“Airfares have risen due to strong demand for travel, and constrained supply, as airlines have scaled back their schedules in response to high jet fuel costs and operational challenges,” said ACCC Commissioner, Anna Brakey.
The commissioner noted that, airlines are still experiencing some pandemic-related resource challenges, but the ACCC will be monitoring them closely, to ensure they return capacity to the market in a timely manner, to start easing pressure on airfares.
“We would be concerned if airlines withheld capacity to keep airfares high,” Brakey added, calling for more competition in the industry to give consumers more choices.– NNN-AAP
