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.

New flights on the way