New data has revealed just how much airfares have risen – and may continue to rise – out of Australia to key Northern Hemisphere markets.
Based on research conducted by travel site KAYAK.com.au, the average return economy airfare to North America during the northern summer is AU$2,365, which represents a roughly 69 per cent year-on-year rise in cost. It’s also around 30 per cent up on the same period in 2019.
Flights to Europe don’t fare much better either, with data showing the average price for a return economy airfare to Europe during the northern summer at $2,571, which is about 46 per cent higher year-on-year and a whopping 63 per cent higher than pre-pandemic prices.
The data is based on return economy flight searches made on the KAYAK website and associated brands between 1 January and 12 April 2023.
Specifically, the average return economy flight price for the US for the northern hemisphere summer is $2,303 (up 31% y-o-y), for Canada is $2,505 (up 28% y-o-y) and for Mexico is $2,630 (up 19% y-o-y).
When to travel
“The winter chill is starting to set in and many Aussies will be eyeing a trip to Europe and North America to warm up,” KAYAK brand director Nicola Carmichael said.
“Travelling in August could be a savvy decision to help you save, with the average return economy flight to Europe around $200 cheaper in August versus July, and $450 less for North America.”
“Several popular destinations like Paris, London and Milan could be great choices as they are showing flight prices all below the Europe average, which is around $2,570 for a return economy flight at that time.”
A sellers market
David Beirman, an adjunct fellow who specialises in tourism at the University of Technology Sydney, told The Guardian the big rise in fares isn’t shocking.
“Airlines for a long time were making next to no money on international flights, especially for economy passengers,” he said.
“Those two years of lost revenue is what consumers are paying for now.
“Maybe by 2024 or 2025 people will be a bit more choosy, less eager to travel, and prices will come down, but at the moment it’s very much a sellers market and airlines are, rightfully or wrongfully, taking advantage of that.”
In January, the American Express Global Business Travel (Amex GBT) Air Monitor 2023 report predicted prices would climb even more sharply in Asia-Pacific due to the slower resumption of travel post-pandemic.
Domestically, the Federal Government decided against funding the Australian Competition and Consumer Commission’s (ACCC) monitoring of Aussie airlines beyond June, in a move that has some worried.
Best value destinations during summer (average economy ticket):
Europe
- Istanbul, Turkey – $2,165
- Frankfurt, Germany – $2,372
- Paris, France – $2,438
- London, England – $2,447
- Zurich, Switzerland – $2,461
- North America
North America
- Hawaii, USA – $1,259
- San Francisco, USA – $1,961
- Los Angeles, USA – $1,963
- Vancouver, Canada – $2,293
- Houston, USA – $2,408
More expensive destinations during summer (average economy ticket):
Europe
- Lisbon, Portugal – $2,963
- Glasgow, Scotland – $2,871
- Brussels, Belgium – $2,821
- Dublin, Ireland – $2,820
- Vienna, Austria – $2,815
North America
- Newark, New Jersey, USA – $2,917
- Boston, USA – $2,895
- Denver, USA – $2,818
- Montreal, Canada – $2,809
- Dallas, USA – $2,806
