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Key Points
- The global decline in jet fuel prices has decreased operational expenses for airlines.
- There is an increase in the availability of seats on flights.
- Australian airlines are set to introduce new overseas routes this year.
Qantas Group’s pre-tax earnings rose to $1.5 billion over the last six months of 2024, while Virgin Australia also reported unprecedented profits; yet, market changes since the beginning of the year have been favorable for travelers.
Jet fuel dropping in cost
Fuel is the largest operating cost for airlines, so fluctuations in fuel prices are passed through to airfares.
“For quite some time, we have anticipated that factors like increased global capacity and reductions in jet fuel costs would lead to lowered airfare prices in various regions. This is one of the multiple reasons why this is materializing now,” she expressed to the Australian Associated Press.
More seats available
International economy fares from Australia decreased by 5% in January and February compared to the same timeframe last year, while business class fares saw a 3% decrease.
