The COVID-19 pandemic has significantly impacted the travel industry, with airlines being hit particularly hard.

As international travel slowed, airlines were forced to adjust their operations to cope with the unprecedented situation. However, the financial losses continued to mount even with reduced capacity and new safety measures.

Airlines have responded to the pandemic by adjusting airfare rates and increasing capacity on domestic routes. According to new data released by the Australian Competition and Consumer Commission (ACCC), airfares dropped to their 15-year low this year.

This price decrease should make it easier for people across Australia to go on holiday despite the looming economic situation.

However, in a rather disappointing trend, people are flying less than before the pandemic.

Airlines have been offering low rates, but the demand for air travel did not increase. Credit: Pexels/Anton Porsche.

While the airlines are doing all they can to make travel cheaper, travellers may feel the pinch of the rising cost of living.

It should be noted that the cost of travel extends beyond just the price of airfare. Accommodation, food, transportation, and activities can quickly add up and make a trip more expensive than anticipated. This may make travellers hesitant to splurge on a holiday, especially if they are trying to save money or prioritise other expenses.

Additionally, the rise of alternative accommodation options like Airbnb have made it easier for holiday-goers to afford ‘staycations’, eliminating the need for air travel.

ACCC Commissioner Anna Brakey remarked: ’While it's positive to see airfares fall from record highs in 2022, passengers are still generally paying more to fly today than before the pandemic.’

‘Airfares typically come down after the Christmas travel peak due to a seasonal decrease in demand. However, some of this reduction is also explained by the airlines increasing their seat capacity.’

The ACCC cited the invasion of Ukraine and the spike in oil prices as significant causes of airfare hikes in the past year.

Now that the fares have settled, Qantas is flying at 102 per cent of its pre-pandemic capacity, Virgin at 96 per cent and Jetstar at 84 per cent.

The Qantas Group had the lion's share of theatre for domestic passengers, with 34.8 per cent of our fellow Australians opting for their services.

Virgin was far behind at 33.4 per cent, while Jetstar flew 26.9 per cent of passengers in the past year alone.

The ACCC report was conducted in light of Treasurer Josh Frydenberg's request in June 2020, which saw a decrease in airfare prices but a lack of motivation to fly among Australians.

Key Takeaways

• Plane tickets have eased from their 15-year highs but are still well above pre-pandemic levels.
• Airlines have increased capacity on domestic routes, but people are flying less than before the pandemic.
• Qantas accounted for 34.8 per cent of domestic passengers, while Virgin had 33.4 per cent and Jetstar 26.9 per cent.
• The ACCC was tasked with monitoring the airline industry’s prices, costs and profits by the former Treasurer in June 2020.

Nevertheless, the overall landscape of the airline industry still suggests that travel is not as popular as it used to be - and not just in Australia, but globally as well.

No one knows when, or even if, people’s confidence in international travel will return. And beyond that, it’s simply not affordable for many Australians.

What are your thoughts on this? Share them with us in the comments below.

 

[Thecheesequeen]

Recently we went to New Zealand for my uncle’s 100th birthday, a few weeks later I had to go again for his funeral, and later in the year we need to go to Scotland to scatter his ashes. It’s been an expensive year for flying for us, but none of the trips are exactly holidays. I expect we’ll turn the Scottish trip into a holiday because it’s too far to go for just a flying visit. The thing is the cost of the NZ flights were nearly as much as the Scotland flights! Why are flights so expensive when Qantas is making an obscene amount of profits?

 

[Penny4]

We've always found that plane fares are reasonable compared to hotel accommodation, as that adds up depending on how long & where to stay. If people stay with relatives or friends, then it's a cheaper holiday as the plane fare is the only cost.
Covid has a lot to answer for the decline of the airline industry. I don't think the average person can afford it these days, after covid world lockdowns.

 

[Happymad]

Qantas are really raking in the money Allen Joyce wants is millions Christmas bonus

 

[Baz1960]

The COVID-19 pandemic has significantly impacted the travel industry, with airlines being hit particularly hard.

As international travel slowed, airlines were forced to adjust their operations to cope with the unprecedented situation. However, the financial losses continued to mount even with reduced capacity and new safety measures.

Airlines have responded to the pandemic by adjusting airfare rates and increasing capacity on domestic routes. According to new data released by the Australian Competition and Consumer Commission (ACCC), airfares dropped to their 15-year low this year.

This price decrease should make it easier for people across Australia to go on holiday despite the looming economic situation.

However, in a rather disappointing trend, people are flying less than before the pandemic.

Airlines have been offering low rates, but the demand for air travel did not increase. Credit: Pexels/Anton Porsche.

While the airlines are doing all they can to make travel cheaper, travellers may feel the pinch of the rising cost of living.

It should be noted that the cost of travel extends beyond just the price of airfare. Accommodation, food, transportation, and activities can quickly add up and make a trip more expensive than anticipated. This may make travellers hesitant to splurge on a holiday, especially if they are trying to save money or prioritise other expenses.

Additionally, the rise of alternative accommodation options like Airbnb have made it easier for holiday-goers to afford ‘staycations’, eliminating the need for air travel.

ACCC Commissioner Anna Brakey remarked: ’While it's positive to see airfares fall from record highs in 2022, passengers are still generally paying more to fly today than before the pandemic.’

‘Airfares typically come down after the Christmas travel peak due to a seasonal decrease in demand. However, some of this reduction is also explained by the airlines increasing their seat capacity.’

The ACCC cited the invasion of Ukraine and the spike in oil prices as significant causes of airfare hikes in the past year.

Now that the fares have settled, Qantas is flying at 102 per cent of its pre-pandemic capacity, Virgin at 96 per cent and Jetstar at 84 per cent.

The Qantas Group had the lion's share of theatre for domestic passengers, with 34.8 per cent of our fellow Australians opting for their services.

Virgin was far behind at 33.4 per cent, while Jetstar flew 26.9 per cent of passengers in the past year alone.

The ACCC report was conducted in light of Treasurer Josh Frydenberg's request in June 2020, which saw a decrease in airfare prices but a lack of motivation to fly among Australians.

Key Takeaways

• Plane tickets have eased from their 15-year highs but are still well above pre-pandemic levels.
• Airlines have increased capacity on domestic routes, but people are flying less than before the pandemic.
• Qantas accounted for 34.8 per cent of domestic passengers, while Virgin had 33.4 per cent and Jetstar 26.9 per cent.
• The ACCC was tasked with monitoring the airline industry’s prices, costs and profits by the former Treasurer in June 2020.

Nevertheless, the overall landscape of the airline industry still suggests that travel is not as popular as it used to be - and not just in Australia, but globally as well.

No one knows when, or even if, people’s confidence in international travel will return. And beyond that, it’s simply not affordable for many Australians.

What are your thoughts on this? Share them with us in the comments below.

Funny how prices started exactly after the new airline "Bonza" started flying. Airlines, have been having a lend of us again. The ACCC, should pay attention and over charging should never have happened.

 

[lizclarke]

International fares and Domestic fares are still higher than pre-pandemic. Don’t try and pull the wool.

 

[Penny4]

It was downright dreadful Qantas outsourced all their ground staff. Outsourcing rarely works in the long term imo.

 

[Ricci]

Holidays are a pipe dream for so many of us. I would love to do some travelling but the money it would cost has to be weighed against heating my home this winter, running and servicing my car, keeping the lights on at home etc. etc. There really is no contest, holidays (or thoughts thereof) have to go by the wayside again.

 

[Babbie]

Qantas are really raking in the money Allen Joyce wants is millions Christmas bonus

Well don’t fly with Qantas . They are are expensive, but their safety record is excellent. I am looking at airfares now, there is plenty of competition.