Bargain hunters are also feeling the pain.
Data from the Bureau of Infrastructure and Transport Research Economics (BITRE) shows the cheapest flight between Sydney and Melbourne in October last year was $129. This October, the cheapest option was $189 – up 46.5 per cent.
Flight Centre chief executive Graham Turner.Credit: Dan Peled
The lowest fare in October between Brisbane and Melbourne was $318 – 22.3 per cent more than a year ago. However, the cheapest Brisbane to Sydney flight was 8.2 per cent lower at $168.
Aviation expert Dr Ian Douglas said bargain fares had disappeared with Rex and Bonza.
“The cheaper prices are usually at quieter times: early morning, mid-afternoon or late evening. I doubt that Qantas or Virgin were ever the cheapest,” he said.
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Business class flights prices increased 33.5 per cent in the year to October, while restricted economy prices were up 16.7 per cent. The cheapest domestic flights were 4.5 per cent pricier, BITRE said.
A Qantas Group spokesperson said domestic airfares had increased broadly in line with inflation since late last year.
“Qantas and Jetstar have regular sales fares, with recent offers seeing Jetstar have $69 fares between Melbourne and Brisbane, while Qantas had fares for $129 between Melbourne and Sydney,” they said.
A Virgin Australia spokesperson said the airline continued to offer frequent sales, and remained “focused on providing exceptional value and choice to Australian travellers”.
The airline had rebooked about 130,000 Rex passengers free of charge since its collapse, they said.
Turner said Qatar Airways’ proposed investment in Virgin would strengthen the local airline and boost competition.
“As time comes on, particularly if Qatar gets involved in Virgin, I think things will become more competitive,” he said.
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