According to a recent market research, domestic airfares have increased so much in recent weeks that booking an international vacation is now more affordable than visiting some of Australia’s top tourist spots.
Since May, Qantas and other airlines have increased their costs as they work to recover from the Covid-19 pandemic’s devastating effects on the travel industry.
The price increases came as airline executives, including Qantas CEO Alan Joyce, have been criticized for aircraft delays and cancellations, long lines, and lost baggage.
The average return economy domestic airfare currently costs $409, an increase of about 24 per cent from May, according to travel deals website Kayak.
Several routes have seen an increase of as much as 85 to 96 per cent.
Queenslanders looking to travel interstate have been worst hit by the price hike by up to 96 per cent.
According to recent research, Gold Coast residents are paying the highest ticket costs in the nation, with return economy rates to Melbourne and Sydney rising by 96% and 91%, respectively.
In the past two months, the cost of flights from Cairns to Brisbane has increased by 90%, while the cost of a round-trip ticket from Brisbane to Alice Springs has increased by 24% to $1058.
Brisbane residents may get a round-trip ticket to Fiji for $100 less with Qantas.
Adelaide to Melbourne fares have increased by 87%, and Darwin to Sydney fares have increased by 85%.
Brisbane residents wanting to fly return economy to Alice Springs are now paying an average of $1058, a 29 per cent increase from May.
Meanwhile, a return economy fare on Qantas from Brisbane to Fiji is about $100 cheaper.
Due to rising gasoline prices, Finder.com.au has issued a warning that domestic flights will stay expensive.
On Virgin Australia’s Sydney to Ballina and Launceston to Melbourne flights, for example, one-way rates start at $69 and are still available.
Jetstar offers flights as little as $74 from Melbourne to the Gold Coast.
Tourism professionals claim that the effect of less expensive international airfares on domestic travel is nothing new.
‘Some of Queensland’s best experiences and wonders can only be found in our regions. It’s a challenge that they’re made less accessible due to relatively high flight costs,’ Queensland Tourism Industry Council chief executive Brett Fraser told NewsCorp.
‘Our industry has done it tough the last three years and to bounce back effectively, we rely on both the international and domestic visitor markets performing.’
Virgin Australia acknowledged prices rise marginally in response to inflationary pressures but they don’t exceed single digit percentages and are generally below six per cent.
‘While inflationary pressures including airport fees, fuel costs and technology costs do mean prices will rise marginally, our fares will remain low and will continue to represent great value for our customers,’ a spokesperson said.
‘In an independent airfare study released last year, some of our economy fares were found to be up to 67 per cent better value than the competition.’
Qantas says it needs to ‘rebalance capacity and fares’ in response to rising fuel costs.
‘The cuts to domestic flying levels for July and August are being deepened with capacity moving from 107 per cent of pre-COVID levels to 103 per cent,’ a recent statement read.
‘These additional reductions will progressively flow into industry booking and reservation systems in the coming days. The Group will continue to monitor market conditions and adjust capacity as needed.
The national carrier estimates its fuel bill this financial year to be $1.7 billion more than it was pre-pandemic.
