Say Goodbye To Cheap Plane Seats In Australia

Andreas Rentz/Getty Images

The tsunami of red ink bleeding from the airlines this week means one thing — the days of cheap flights are over.

The battle for the skies has been to hard on both Qantas, which announced a record $2.8 billion loss, and Virgin a $356 million loss.

The Sydney Morning Herald reports that so much capacity has been added to the system it could take well into next year before fares jump, according to analysts.

Much of that over capacity is the the cheap holidays fare segment. Both airlines have been cutting the number of available seats since about the start of this year.

The average price of the lowest-cost domestic economy class tickets have fallen by 32% since September 2011, according to the SMH.

Virgin CEO Borghetti says prices will rise in some market segments.

“I don’t think you should definitely assume the lowest fares for consumers are definitely going to move,” he says.

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