News
Australia’s corporate regulator warns of higher domestic airfares
September 16th 2026
Air travellers in the Australian domestic market are facing the prospect of higher airfares amid elevated fuel costs and capacity reductions in a market showing resilient demand, the Australian Competition and Consumer Commission (ACCC) said. Read More » The competition regulator’s domestic airline competition in Australia said jet fuel prices were about 50% higher in August compared with February. The report also noted both Australia’s two major airline groups - Qantas Group and Virgin Australia - had reduced capacity and flagged further cuts in the period ahead. The ACCC report said seat capacity fell 2.3% in both May and June compared with a year earlier. Capacity in June was the lowest for that month since 2022. "With resilient demand and high load factors, the announced capacity reductions may place upward pressure on airfares, depending on airlines’ commercial decisions and fuel prices," ACCC chair, Gina Cass-Gottlieb, said. "Despite significantly higher fuel costs, both the Qantas Group and Virgin Australia continued to generate substantial earnings in 2025-26. These results highlight the financial resilience of the two largest operators in Australia’s highly concentrated domestic aviation market."
