Domestic Airfare Prices Soar in 3 Months Since Collapse of Regional Airline

Cheaper and mid-range domestic airfares have soared in the past three months after the collapse of regional airlines Rex in July, according to the Bureau of Infrastructure and Transport Research Economics (BITRE).
BITRE compiles a monthly survey of airfare prices from internet booking sites.
According to its “best discount airfare” price index—a measure of the average cheapest air tickets—there was an increase from 57.5 points in July, to 70 in September 2024—21.7 percent increase.
“Fares today are well down from their 2022 peaks, are lower than pre-COVID, and are in line with long-term trends,” King said in a statement provided to The Epoch Times.
“The ACCC has made it clear that they are closely monitoring airfares and are vigilant to other carriers increasing fares on routes where Rex is no longer operating.”
The minister said that if Qantas or Virgin misused their power they could “expect to be caught.”
“As laid out in the Aviation White Paper, the Albanese government will continue to take action to drive competition and better consumer outcomes through our reforms to Sydney Airport slots, consumer rights initiatives, boosting bilateral agreements to add flights to Australia, and the construction of Western Sydney Airport,” King said.
Previously, the Nationals senator urged the government to consider forcing the national carrier to sell its budget airline, Jetstar, but later walked back those comments as they had not become formal party policy.
“The data in the BITRE report does not represent average fares which customers are paying to fly domestically,” the spokesperson said.
“Qantas and Jetstar have regular sales fares with Jetstar offering $67 fares between Melbourne and Hobart while Qantas has fares for $139 between Sydney and Ballina.”
However, the best deal on Saturday, Sept. 21, is $175 for a one-way flight at 6 a.m. with Jetstar, $250 with Virgin, and $267 with Qantas amid football finals season.
“Fares are recorded only when they are available on the nominated day of travel (the last Thursday of the month),” the government agency said.
“The series is a price index of the lowest available fare in each fare class, weighted over selected routes. It does not measure real airline yields or average fares paid by passengers.”
The Epoch Times has also contacted Virgin and the Australian Competition and Consumer Commission for comment.