Airfares fall as Australian flights return to pre-pandemic capacity

Just over four years since the global pandemic brought air travel to a standstill, new data from Flight Centre indicates both domestic and international airline capacity is back at 2019 levels, while airfares continue to fall.

Flight Centre pulled the milestone numbers from its FCM Travel and Corporate Traveller arms, and Melissa Elf, Flight Centre Corporate Global COO, says “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.”

An analysis of key international routes for Australian travellers reveals a noteworthy trend, with fares on some routes plummeting by up to 25%.

With increased capacity and competition in the market, this downward trajectory in airfares is expected to persist throughout the remainder of the year.

And while some countries continue to lag in their international and domestic capacity, others have experienced a resurgence, surpassing pre-pandemic levels.

Australia's international capacity currently stands at an impressive 95%, according to the Flight Centre analysis, with expectations for further growth in the coming months.

International seat capacity out of Perth now stands at 111%, while Sydney is nearing full capacity at 97%.

However, airline capacity isn't consistent across the board compared to 2019. Qantas is still off the pace, with not all of its A380 superjumbos back in the skies, while Virgin Australia has long since scuppered its long-range international flights to Hong Kong and Los Angeles.

Cathay Pacific and Singapore Airlines are also steadily rebuilding their Australian networks.

At the same time, several international airlines are expanding their reach – among them US carriers American Airlines and Delta – alongside new entrants such as Turkish Airlines and Vietjet.

Japan is now listed at 130% of pre-pandemic capacity for flights from Australia, with Qatar at 109%; the UK has levelled out at 100%, while Singapore hovers just under at 96% and Hong Kong at 63%, due to a shortfall in flights from both Cathay Pacific and Qantas.

Flight Centre’s Elf anticipates Australia’s international capacity will “tick up to 98% next month, and hover around that mark for the next six months.”