Growth in Australia’s aviation industry will be “muted” this financial year, with weaker consumer outlook and economic uncertainty expected to impact airfare pricing.
CAPA Centre for Aviation Executive Chairman Peter Harbison says the domestic economy is likely to be effected by the slowdown of the mining boom and the governments’ plan for further budget cuts.
He continued by also saying, “Looking ahead geopolitical tension could put pressure on jet fuel prices and fleet plans for our major carriers, indicating no substantial growth is incoming.”
A snapshot from the report also states, “While weak consumer outlook has contributed to Federal Government budget uncertainty, demand is expected to recover in late 2015.”
Harbison’s comments are reflective of industry wide concerns following the downing of MH17.
As airlines continue to divert from normal flight paths there is speculation that there will be an increase in ticket prices for global airline consumers.
His comments come ahead of the September release of analysis conducted by both CAPA and Flight Centre’s business travel consulting group 4th Dimension in the Australian Aviation and Airfare Analysis report.
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