Domestic Airfares Rise After Airline Collapses

The collapse of regional airline Rex in July has led to significant increases in domestic airfare prices, with the cheapest economy fares rising by 12.5% from July to September. The Bureau of Infrastructure and Transport Economics indicates that average airfares have surged, with some tickets now costing more than during typical holiday periods. Former ACCC chair Allan Fels noted that competition directly influences ticket prices, which have spiked following the exit of regional players. While Minister Catherine King claims overall airfares are trending downward compared to 2022 peaks, critics argue that prices have increased significantly since the recent airline disruptions. Qantas and Virgin Australia have faced backlash from frustrated travelers, particularly sports fans, over soaring ticket costs. The situation underscores concerns about a lack of competition in the Australian domestic airline market, primarily dominated by Qantas and Virgin after the exit of Rex and Bonza.