If you think that ultra-cheap domestic flights in Australia are becoming harder to find, you’d be right.
Take a look at the annual percentage increase in “best discount” fares in the latest Bureau of Infrastructure, Transport and Regional Economics (BITRE) domestic air fare report released today.
The chart comes courtesy of Commsec:
Based on Commsec’s calculations, the cheapest tickets on offer soared (excuse the pun) by 16.2% in the year to February, significantly higher than the 2.7% and 2.4% rise in business class and restricted economy fares over the same period.
“With demand for air travel strong, airlines may have less incentive to discount fares, but also the sharp lift in jet fuel prices would be serving to keep upward pressure on fares,” says Craig James, chief economist at Commsec.
“The price of jet fuel has lifted by 90% in just over a year and is not far off 18-month highs.”
Customer demand is strong and costs are rising, so snagging a bargain is becoming a whole lot harder.