Australia watchdog flags capacity ‘stagnation’ amid rise in domestic traffic

Australia’s competition watchdog has urged the country’s domestic carriers to “find other ways” to boost operating capacity, as supply chain issues and delivery delays coincide with a spike in travel demand. In its latest analysis of domestic airline competition, the Australian Competition and Consumer Commission (ACCC) found that the growth in passenger volume at the end of 2024 outpaced capacity growth. ACCC data shows that for December, Australian operators flew 5m domestic passengers – about 3.5% higher year on year, and down 3% against pre-pandemic volumes. Leading the increase were Virgin Australia and low-cost operator Jetstar, who recorded a 15.8% and 11% rise respectively. By contrast, capacity – measured by the number of seats flown – only inched up 0.5% year on year. Compared to 2019 levels, the total number of domestic seats flown was down 5%.<br/>