Discount airfares hit 15-year price high in Australia

Discount domestic airfares in Australia hit a near-15-year price high in September as airlines balanced surging demand with high fuel prices and inflation. According to new BITRE data released by the department of transport, the ‘best discount’ airfare index hit 107 points last month, despite being at just 48 in April this year. Regular airfares also hit 83 points, its highest since March 2020 and the start of the COVID pandemic. The huge prices are a result of a perfect storm for the industry, which is still battling staff shortages and instability caused by the war in Ukraine. In total, jet fuel prices have risen by more than 40% in the APAC region in the last year alone, according to IATA, and by 85% in North America. The steadily increasing prices led to both Qantas and Rex announcing earlier this year that both airlines would be forced to up fares to cope. In March, Qantas CEO Alan Joyce said the airline had hedged around 90% of the fuel it needed through to the end of June, and 50% of its requirements for the September quarter and said the airline would ultimately need to increase airfares to account for its increasing costs.<br/>