Following the collapse of regional carrier Rex, domestic airfares between Australia's major cities have surged, with some routes experiencing almost 100% increases. The Australian Competition & Consumer Commission (ACCC) reported a 13% average rise in fares between major cities and highlighted the reduced competition as Qantas, Jetstar, and Virgin Australia now carry 98% of domestic passengers. This has limited choice for travelers, with fewer incentives for airlines to lower fares or improve reliability.
One of the most significant fare hikes was for the Adelaide-Melbourne route, where "best discount economy" fares rose 95% to A$296, and Melbourne-Gold Coast fares increased by 70% to A$432.
Qantas responded to the ACCC report by saying the data only reflects a snapshot of the lowest fares available three weeks before travel, suggesting these fares may not represent what most customers pay. They attributed higher prices partially to high demand around events, such as Coldplay’s Melbourne concert, which drove early fare purchases, leaving higher-priced options available closer to the event.
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