The Australians paying an extra 11 per cent on flight costs

Résumé détaillé

Many regional and remote routes carry less than 15,000 passengers a year. Around ten flights or fewer each week take off with at least a third of the seats empty, on average.…

Even though people flying on regional and remote routes around Australia are paying higher airfares than those taking city routes, the viability of some of these routes could be at risk.

New analysis has found regional and remote airfares were 11 per cent higher per customer and equivalent to 13 per cent more per kilometre compared to routes connecting major cities, between 2023-2025.

The Productivity Commission has analysed cost and revenue data from airlines for the first time, finding that on some routes, such as short regional and short remote routes, the fare per kilometre was more than double that of city routes.

Many regional and remote routes carry less than 15,000 passengers a year. Around ten flights or fewer each week take off with at least a third of the seats empty, on average.

Competition is also lower, with 90 per cent of passengers using Qantas Group or Virgin Australia.

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Meanwhile high costs and a lack of competition have raised concerns about the future viability of these services.

According to the Commission's analysis, 91 per cent of regional airfares can be attributed to operating costs. It says the remaining profit margin of nine per cent is broadly comparable to most major city routes.

But on some routes, the profit margins are much higher. Mining routes on average are closer to 20 per cent or more.

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