Melbourne Airport predicts “softening” airfares over the year

Melbourne, Australia - December 10, 2016: Melbourne airport check-in zone
By James Harrison


Domestic airfares are still about a year away from hitting their pre-pandemic level as passenger numbers neared 2019 levels in March and over the Easter holidays, according to Melbourne Airport.

Speaking to the Australian Financial Review, Melbourne Airport’s chief of aviation Jim Parashos said that travellers can expect to see airfares “softening” over the year.

“Airfares naturally are a function of supply and demand, and we are seeing that supply starting to come back in the international market,” Parashos said.

“Towards November and December, I don’t think we will see 2019 levels, but I think we will see airfares softening.”

Passenger numbers through Melbourne Airport returned to almost 88 per cent of pre-COVID levels in March, with a new post-pandemic monthly record of 2,711,528 people passing through the terminals.

The number of international travellers continues to climb, with 721,496 passengers representing 80 per cent of the 895,162 figure recorded in March 2019.

“We know many Australians will still travel domestically despite the economic conditions, and any softening in consumer confidence will be countered with lower airfares,” Parashos said.

“Still, I think we are probably 12 months away from seeing 2019 levels in the domestic market.”

Capacity increases have continued in April, with Vietjet launching flights from Melbourne to Ho Chi Minh City and Qantas set to start direct flights from Melbourne to Jakarta this Sunday.

Domestic seat numbers have also increased, helped by Bonza launching flights from Melbourne, which serves as its only capital city destination and the airline’s second crew base.

Parashos said the ongoing restoration of capacity would help put downward pressure on fares.

“Cost of living pressures are a real issue for many Australian families at the moment and every extra seat and service is important to help push ticket prices down and keep Australians connected,” he said.

“We have been working closely with the airlines and their ground handlers to improve their operational resilience and reliability, and overall we’ve been pleased with how they have performed so far these holidays.”

Featured Image: (Source-iStock/Katharina13)

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