Since Rex shut down its jet services, flying in Australia has become both pricier and more crowded. According to a new report from the Australian Competition and Consumer Commission (ACCC), airfare prices have jumped across the board. For example, a one-way ticket from Adelaide to Melbourne has shot up by 95%, now costing around $296. Flying from Melbourne to the Gold Coast will set you back 70% more, at $432, and Canberra to Melbourne fares are up by 54% to $298. All of this is happening despite fuel costs dropping by 41% over the past year.
Anna Brakey from the ACCC explained that the fare hike reflects less competition among airlines after Rex pulled out from nearly half of its routes between major cities. Now, Qantas Group (which includes Jetstar) and Virgin Australia dominate the domestic market with a massive 98% market share.
Qantas tried to bring some excitement with a “Surprise Sale” on a million seats across the country, but their “special” fares aren’t quite as low as they used to be. For instance, the Melbourne-Sydney route, once on sale for as low as $99, now has a special fare of $145.
Since July 2024, the number of seats available on domestic flights has dropped by 6%, even though demand hasn’t changed much. With fewer seats but the same number of passengers, flights are now fuller and airfares steeper.
Brakey pointed out that with less competition, consumers have fewer choices and there’s less pressure on airlines to keep fares low or improve service. Rex, meanwhile, is still running its regional routes with smaller turboprop planes, as their Boeing 737s are being returned to their owners and sent out of the country.
On the topic of cancellations, rates have been fluctuating, with an average of 3% of flights canceled in July, which later improved to 2% by September. Rex had the lowest cancellation rates, while Qantas was at the higher end of the scale.
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