Foreign airlines are cutting back on Australian flights, taking cheap airfares with them

Australians should prepare to pay higher international airfares, as airlines struggling with rising fuel costs cut their capacity on routes here for the first time in more than a decade. Airline flight schedules show the total number of seats being flown out of Australia are set to fall by about 1% from late October to late March. It will be the first time international summer capacity has fallen since 2005, and is a dramatic turnaround following years of rapid growth from overseas carriers. The "unheard of" retreat was primarily due to oil prices rising, up about 45% over the past 2 years, which made long-haul Australian services less viable, said Tony Webber, a consultant from Airline Intelligence and Research. CAPA said both domestic and international aviation had "ground to a halt", which would have "major ramifications for domestic and international tourism. <br/>