Key Points
- Jet fuel prices have dropped globally reducing operating costs for airlines.
- The capacity of seats on planes has also increased.
- Australia’s airlines are launching new international routes later this year.
While Qantas Group earnings before tax soared to $1.5 billion in the last six months of 2024, and Virgin Australia also announced record profits, market dynamics since the new year have also benefited travellers.
Jet fuel dropping in cost
Fuel is the largest operating cost for airlines, so fluctuations in fuel prices are passed through to airfares.
“We’ve been saying for a long time now that global capacity increases and other factors like jet barrel cost reductions would go hand-in-hand with airfare price drops in various regions, and this is one of several reasons that we’re now seeing this come to fruition,” she told the Australian Associated Press.
More seats available
International economy airfares out of Australia dropped 5 per cent in January and February compared to the same period last year, while business class tickets fell by 3 per cent.
