It’s getting cheaper to fly around Australia.
Unless you’re sitting in business.
Commsec, citing data released by the Bureau of Infrastructure, Transport and Regional Economics (BITRE) earlier today, notes that discount airfares fell by 6.2% in the year to August, continuing the price deflation seen for much of the past year.
“(Over) the past 10 months discount airfares have been falling in smoothed annual terms,” said Craig James, chief economist at Commsec.
“Clearly budding passengers are shopping around for the best deals and airlines are forced to respond. But helping out the airlines are lower jet fuel prices, serving to restrain airline costs,” he adds.
While it’s getting cheaper to fly at the back of the plane, up front it’s a different story with business class airfares increasing 0.2% in August, leaving them up 6.8% on the levels of a year ago.
Though a hefty increase, James’ notes that business class fares rose at a 1.2% annual rate during the past six months, indicating a moderation in price growth from levels seen last year.
Here’s the recent trend in domestic airfare prices, courtesy of Commsec.
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