In order to recover revenues and pay the rising cost of aviation fuel, the price of certain domestic flights has more than quadrupled since the beginning of the COVID-19 epidemic.
In an analysis of Bureau of Infrastructure and Transport Research Economics (BITRE) data conducted by comparison website Finder, it was discovered that certain airfares had increased by 112%.
Flights between Perth and Sydney were previously priced at an average of $407 per person before the outbreak. Those figures have more than doubled (by 112 percent) by 2022, reaching $862. The Melbourne-Perth route has also gotten more costly, with prices increasing by 66 percent from $368 in 2019 to $611 in 2022, representing a 66 percent rise in cost.
When comparing the first two months of 2022 to the same time in 2019, the average fare had increased by 7 percent.
Following a nearly two-year period of inactivity, Finder travel expert Angus Kidman said that airlines were just in the early stages of recuperating their losses.
According to Mr Kidman, “as demand grows and airlines work to restore capacity, Australians should be prepared for flying prices to stay high.”
Furthermore, growing fuel prices will add to significantly higher airfares, leaving Australians with little choice but to book their trips as soon as they can.”
According to the findings, although the average cost of flight has climbed since 2019, the average cost of flying on select routes has decreased.
Between January and December of last year, the Melbourne to Sydney route saw a cost reduction of 33%, while the Brisbane to Cairns route had a cost reduction of 28%, with the Melbourne to Sydney route dropping from $170 to $114 (a reduction of 33%).
The months of January and February are excluded from all comparisons between 2019 and 2022 data, in order to account for seasonal variations in price. All comparisons are based on the lowest available fare.
Qantas CEO Alan Joyce cautioned earlier this month that if oil prices continue to rise, the cost of aviation fuel would rise as well, and that the increased cost will ultimately be passed on to customers.
“Unfortunately, if they [oil prices] continue to rise at their current levels, airfares will have to rise as well, and we will have to pass those increases on to our customers,” Mr Joyce said at a business conference.
In the event that it rises considerably further – say, to $US4 for a barrel of oil – that means that airfares will have to improve by another percentage point.
“I believe it will have an influence on the amount of travel that takes place out there.”
Despite the warning, Mr Joyce said that passenger demand might more than balance expenses, which may explain why the key commercial route between Melbourne and Sydney has been impacted by COVID-19.
“I’ll add one more thing about this: a great deal of it is dependent on demand.” The demand is really ahead of the supply at the moment, according to Ms Joyce.”
The demand for our products in London and the United States – which accounts for half of our worldwide business – is more than our ability to meet at the present time.”
