If you’re in the market for a cheap domestic airfare in Australia right now and not having any luck, the chart below probably explains why.
Courtesy of Savanth Sebastian, senior economist at Commsec, it shows the annual percentage change of discount domestic airfares in Australia.
After several years of flat to negative growth, discounted fares have rocketed higher in recent months, rising by 21% in the year to January, the fastest annual growth seen in close to five years.
That may be partially explained by strength in global crude prices over the same period which more than doubled in 2016.
Australia’s Bureau of Infrastructure, Transport and Regional Economics (BITRE), the source of the report, says the fares measured include Qantas’ Red e-Deal or Super Saver, Virgin Australia’s Getaway, Jetstar’s Starter, Tiger’s Internet Discounted Fare and REX’s Rex Saver or Rex Net.
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