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Domestic airfares are getting more expensive, according to the latest government data, as an aviation expert warns that geopolitical instabilities in the Asia-Pacific region don’t bode well for the industry’s recovery.
A number of factors influence the airfare index such as fuel costs, competition among airlines, demand, taxes and fees, and currency exchange rates.
Jet fuel costs comprise 30 to 40 per cent of an airline’s total operating cost and to protect any margin if fuel prices go up (as they did in mid-January) airlines pass on those costs to consumers through fares or fuel surcharges.
Professor Doug Drury, head of aviation at Central Queensland University, said that inflated airfares resulted from expensive fuel prices and geopolitical conflict.
He believes these factors needed to “stabilise” or preferably “end” before prices could “get back on track”.
“The geopolitical global developments need to change,” he said.
“As consumers we’re … just trying to hang on as best we can. It hurts at the pump, and it hurts at Woolies and Coles, so people are still staying home … and those that can afford to go are paying dearly for those seats.”
The cost of training pilots and cabin crew to fill vacancies caused by staff who left the industry during the pandemic, is high and takes time.
Professor Drury said these factors could also be affecting airfares.
“Labour for the airlines is huge. And they’re trying to recoup what they lost during COVID,” he said.
“That’s what has caused a lot of anxiety and cancellation of flights and problems with our industry. And that takes a while to rebound.”
He said that, ultimately, consumers can control airfare prices through their choice of travel.
“If people continue to pay these prices, the airlines will keep them inflated.”
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Travel tips
- Book in advance: Booking flights, accommodation and experiences further in advance can often result in a cheaper deals due to better availability
- Consider longer travel time: By being willing to travel a bit longer and taking a non-direct route, you may find cheaper options and save money on your flight. Instead of booking a direct flight, consider connecting flights with multiple connections. Mixing and matching airlines (e.g. if you are a Qantas supporter, look at oneworld Connect) and being creative can also bring down prices
- Use a travel agent: Travel agents have the expertise to mix and match carriers and airlines, offering options that might not be available online. They can also source cheaper accommodation and travel experiences
- Choose less-popular destinations: Getting off the beaten path and opting for less-popular destinations, or taking a vacation closer to home, can also help reduce costs
- Be flexible with your travel dates: Don’t pick a specific travel date, and be flexible. If you book your flight, look for options that tell you if travelling a few days earlier or later can result in a lower fare.