Aussie airports accuse airlines of squeezing capacity and arcing airfares
Australian airports are calling on airlines to reduce the cost of domestic airfares by increasing capacity and offering better deals for travellers.
The Australian Airports Association (AAA) has accused airlines of playing with supply and boosting prices, after new data from the Bureau of Infrastructure, Transport and Regional Economics (BITRE) revealed domestic airfares have increased more than three times the rate of inflation, as reported by the AAP.
The accusations were immediately denied by airlines, who argue that ticket prices have fallen and added that increased airport fees were to blame for an arc in airfare prices.
The AAA pointed to the fact that domestic airfares have increased by almost 19 per cent over the past three years.
Chief executive Caroline Wilkie told the AAP that passengers should not have to keep paying more.
“The airlines should stop playing games with the public and start offering more affordable airfares,” she said.
The data shows that total domestic passenger numbers have increased by 2.5 million, or more than four per cent, over the past three years, while the number of extra seats made available by the airlines increased by just 265,000, or 0.3 per cent.
“This equates to one seat for every 9.5 additional passengers in the past three years,” Wilkie said.
Furthermore, between August 2016 and August 2019, domestic airfares increased by 18.6 per cent as airlines continued to constrain seat capacity.
In the same report, however, “best discount economy” airfares were shown to be 40 per cent lower than ten years ago, while airport charges rose 25 per cent in the same period.
Airlines for Australia and New Zealand (A4ANZ) chairman Graeme Samuel told the The Sydney Morning Herald Australia has seen a decade of a significant drop in “best discount” fares.
“The best discount fares are 40 per cent lower than 10 years ago. The reason they have increased in recent times is airport charges,” he said.
Samuel added it did not make sense for airlines to open additional seats as domestic routes were typically not selling all available seats at present.
“They’re arguing airlines would increase their capacity when [utilisation] is currently at 80 per cent,” he told SMH.
Speaking to Travel Weekly, a Qantas spokesman added that despite the airline’s fuel bill having increased in the last 12 months, airfare prices have only increased moderately in that time.
“Our fuel bill increased by 27 per cent last year to $4 billion and airport charges keep going up, but there’s only been moderate increases in airfares, with Jetstar selling almost two-thirds of fares for under $100,” the spokesperson said.
Virgin Australia said it aims to deliver best value airfares but said this could be affected if fees continue to increase.
“If airport fees continue to increase, then it will make it more difficult for all Australians to access the best value airfares,” a spokesperson for the airline told Travel Weekly.
Both airlines are members of A4ANZ, an industry group that has reportedly been lobbying for better deals for airlines and retailers when dealing with domestic airports.
However, the Productivity Commission has confirmed airport charges make up a small portion of airfares and have little impact on the price of a ticket.
Email the Travel Weekly team at traveldesk@travelweekly.com.au
Australian Airports Association Bureau of Infrastructure qantas Transport and Regional Economics virgin australiaLatest News
Holland America Line gives agents the chance to visit Alaska on 11-day Famil
If you've ever wanted to see a Polar Bear (and who doesn't?), now is your time.
More than 65 luxury agents gather in Sydney for Best of the Best dinner
This looks like a fabulous do. We imagine there may be a few (or maybe 65) sore heads this morning!
Globally-renowned chefs gather for Vivid Food 2024
As a human, we agree that food is a fundamental part of the human experience. Some might say the most fundamental.
Air New Zealand returns to Hobart and Seoul
If you notice an uptick in Kiwis making their way through the Mona, you know why.
European Waterways targets multi-generational families with ‘floating villa’ deal
The jury is still out on whether spending a week on a 'floating villa' with family is a hell or a paradise.
Luxury Escapes launches ‘sail away’ sale
Rest assured, you'll be getting your 'sails' and 'sales' mixed up for the rest of the day.
Rex-owned National Jet Express adds weekly charter between Brisbane and Orange
This is for mining and civil contractors, so please, put your holiday attire away.
Let the games begin. Viking introduces eye-watering benefits for the industry’s top 10 advisors
Did someone say 'trip to Venice'? Hold my coat, this one is far too good to miss!
Best friends or frenemies? What is the REAL relationship between sales and marketing?
We can all stop fighting over the corner office because our mothers were right - we are all important in our own way.
The Walshe Group Announces Two Key Appointments
What we really want to know is whether they got joint or separate welcome parties.
FAMIL: Agents explore the delights of Mauritius on 7-day tour
Go green with envy as you read this fabulous itinerary! Time to book that second honeymoon.
Hamad International recognised as world’s best airport at 2024 Skytrax World Airport Awards
Hamad airport is so good it is almost considered a destination in itself. Ballina, up your game.
Saudi Arabia highlights tourism investment opportunities at global investment event
Now is the time to start looking at Saudi Arabia if you are not already. There's big things to come.
“Rampant” – Aussies warned as dengue fever cases spike in Bali
Worried about Bali belly? Now you have something else to worry about.
TTC Tour Brand reveals slew of deals across operators including Trafalgar and Contiki
Everybody loves a bargain and you could do lot a lot worse than check out these deals from TTC!
Fiji Airways partners with Porter Airlines in US growth bid
Any initiative that gets more people visiting the delights of Fiji is a good initiative.
Flight Centre launches CruiseHQ – a marketplace exclusively for agents
The cruise industry has surpassed pre-Covid levels so this isn't one to miss!
Feeling festive? Wendy Wu tours unwraps Christmas collection
Get the Christmas hols booked now and avoid spending it with that elderly relative with dubious political views.
OPINION: In a world of screens, we crave experience
If you get feelings of deep shame and regret when you see your screen time, don't worry - you're not alone.
Sun Princess: High-end dining and world class entertainment awaits
If you are a foodie and you are not currently on the Sun Princess, we really have to ask - what are you doing?
YouGov: 2 in 5 Aussies would pay more for a sustainable hotel
If you want to be REALLY sustainable you can go camping. You just might lose the will to live.
“Can planes swim?” – Planes become boats as Dubai Airport is savaged by severe storm
Unfortunately, "can planes swim?" is a real life question and not an opener to a really bad joke...
Explora journeys reveals bespoke outdoor furniture designed by Matteo Nunziati
This is making your plastic table and chairs look really bad now, isn't it?
Bangkok Airways targets growth with renewed Sabre deal
Two stories abut Sabre's growth in one week and its only Wednesday! Watchout world.
PR agency Example wins pitch for InterContinental Sydney
We also went in for the contract but they said that a 'Be Our Guest'- themed TikTok was unoriginal! The cheek.
Norwegian Cruise Line reveals culinary experience aboard Norwegian Aqua
Once again, this TW journalist REALLY regrets writing this before getting lunch.
Signature Queensland hosts luxury tourism event
Known for its tropical beaches and unique wildlife, Queensland also offers luxury.
Capella Sydney recognised in prestigious Travel + Leisure’s 2024 ‘it list’ of best new hotels
You know that 'it girl' at school who everyone wanted to hang out with? Capella is the hotel version of that.
Rex launches 72-hour fare sale with NO school holiday blackout so you can take your kids (if you want to)
Sadly, leaving your children at home whilst you go on holiday is generally frowned upon.
Adventure World offers chance to connect with “heart and soul” of the US
I mean who hasn't dreamed of a road trip around the US?! Go with Adventure World and you're less likely to get lost.
Fiji’s family-owned luxury resort Likuliku Lagoon launches its own app
We were relieved to find out that having a "concierge in your pocket" referred to an app on your phone.
Hawaii: The US’ laid-back front door for Australians
If you needed another sign that you should definitely head to Hawaii - this is it!
Sabre targets Asia Pacific growth with latest hire
Call the Avengers! Sabre continues its bid for world domination with latest hire.
Air New Zealand signs its largest EVER deal for sustainable aviation fuel
Air New Zealand makes huge step towards sustainable travel. We bet it recycles its rubbish properly too.
IHG Hotels & Resorts continues regional growth with Sunshine Coast Holiday Inn
This Holiday Inn looks considerably flashier than some of the ones we have stayed at in our time.
Budget carrier Scoot welcomes first of 9 E190-E2 aircrafts
Here at TW we would like to offer Embraer E190-E2 a warm welcome! It's not easy being the first of the fleet.