Airfares drop as travel returns to pre-Covid capacity

airfares

International airfares out of Australia have seen a drop as global and domestic air capacity reach pre-pandemic levels for the first time.

New data from Flight Centre’s corporate divisions has found fares on some routes have dropped by up to 25 per cent, with that trend set to continue as more capacity and competition is introduced to the market.

“As of this month, and for the first time since the pandemic, we have reached aircraft passenger seat capacity that is above or beyond pre-pandemic levels globally,” said Flight Centre Corporate Global COO Melissa Elf.

“This means that across the world we have as many seats available to passengers as we did before 2019.

“We’re seeing this directly correlate to decreasing airfares, which is great news for our corporate travellers, who rely on travel to keep their businesses ticking, and win new work.

“We still have some countries that are lagging in their international and domestic capacity, but some that have come back stronger than ever before. It’s evident in the data that the airlines and airports with the highest levels of capacity are seeing the best rates for passengers.”

Elf says that Australia’s international capacity is currently at 95 per cent and expected to rise to 98 per cent next month, where it will stabilise for the next six months.

“It will also vary depending on the port of departure – for example, international seat capacity out of Perth is at 111 per cent, and Sydney is nearing full capacity at 97 per cent,” she said.

“We’re seeing promising signs that this will be a long-lasting trend, thanks to new international capacity announcements like recent ones from Delta Airlines, Singapore Airlines, China Southern and Jetstar.”