Finally some relief for travellers with new data showing a decrease in international outbound airfares.
Economy fares across all carriers have decreased by five-to-10 per cent in the latest quarter, equating to an average saving of more than $100 each way (July – September 2024 vs July – September 2023).
Business class has followed suit, with fares decreasing by four per cent, or down by more than $300 during the same period.
The data has been compiled by Flight Centre Travel Group’s flagship corporate divisions, FCM Travel and Corporate Traveller.
Flight Centre Corporate analysed the cost of fares into key destinations, finding the biggest drops into Qatar, UAE and key European countries.
Melissa Elf, Flight Centre Corporate Global COO, said a gradual decline in international airfares reflected the growing capacity and competition of international carriers out of Australia.
“We’ve seen a year on year drop in average international fares every month for well over a year now, so it’s more than just a trend; this is increasing stability in the travel industry.”
Despite declining international airfares, the data revealed that domestic fares had seen an increase, with the impacts of Rex Airlines leaving trunk routes and high travel demand over the September holidays being key contributors.
Domestic economy airfares increased in the September quarter this year by three-to-five per cent, compared to the previous year, which was an average $10-20 increase per ticket.
However, the recently announced deal between Virgin Australia and Qatar would see additional capacity and competition added to Australia’s international travel market by mid-2025, if approved.
The partnership would see new connections to Doha from Brisbane, Sydney, Melbourne and Perth, from where 107 new connections would be made to Europe, the Middle East and Africa.
“There is a direct correlation between regions that were adding and welcoming airline capacity and the cost of travel decreasing,” Ms Elf said.
“With demand into Europe, the Middle East, Asia and the U.S. remining high, it’s critical more flights and competition are added, and announcements like that from Virgin and Qatar, once approved, is the kind of thing the industry needs to ensure prices drop even further.”
https://www.flightcentre.com.au/
