Domestic travel could have a hard time keeping up with international as increased competition and cheaper fuel sends global airfares plummeting to an all-time low.
According to industry experts, flights out of Australia are expected to continue their downward spiral over the coming months, to reach their lowest in around 30 years.
International travel will be on par, if not cheaper, than domestic travel in some cases like flights from Adelaide to Bali, which are expected to reach around $277 return this year.
Then there’s that increased trans-Pacific competition between Air New Zealand, Qantas, American Airlines and United, that is expected to push flights from Sydney to Los Angeles down to around $900 return.
Flight Centre Head of Leisure, Tom Walley, said airlines are responding to market conditions such as cheap fuel and more competition “with amazing airfares not seen before”.
“Even looking back just 12 months, an airfare to South America for under $1300 return was unheard of, now that’s the type of price you can expect to pay.”
Tom Walley, Flight Centre Head of Leisure
“It’s a very exciting time for the industry when pricing has never been better, the quality of travel products is extremely high and more people can get out and explore the world.”
The latest International Air Transport Association report shows that airfares around the world fell an average of 4.5 percent in 2015.
A further dip is expected this year, as a result of “competitive pressures… [and] declines in oil prices”.
A recent Corporate Travel Management analysis shared IATA and Flight Centre’s findings, saying Australian travellers will enjoy steady international airfares over the next 12 months.
The study released earlier this year found that on the other side, Australian domestic airfares will climb as a result of growing demand from Asian travellers and a slowdown in new capacity. Read on
