Discounted domestic airfares in Australia aren’t as cheap as what they once were, according to a new study, which found price reductions haven’t been all that favourable over the last few months.
Research conducted by Australia’s Bureau of Infrastructure, Transport and Regional Economics (BITRE) found discount airfares have risen from September last year – meaning that while flights are on sale, the reduction percentage is higher than previous periods.
The rise comes after a steady four years, in which Aussies have been treated to generously discounted domestic airfares that had little to no growth.
Senior Economist from Commsec, Savanth Sebastian, told Business Insider that discount rates increased in the year to January by a massive 21 percent, which is the fastest annual growth in up to five years.
The increase in discounts could affect domestic travel over 2017, especially while international airfares to destinations such as the USA and Europe are being discounted reach record lows.
For example, in April last year flight out of Australia broke a 30-year record with flights to Los Angeles reaching around $900 return and South American from $1,300.
The trend continues into this year, with Jetstar unveiled super cheap flights to Bali this week starting from $99, while Hawaii is selling for around $260.