Australian airfares drop 12% as jet fuel prices plunge and seat availability grows
Persistent jet fuel-price weakness promises further ticket-cost relief with airlines’ new international routes launching later this year
Overview
- Domestic economy fares were 12% lower in January and February 2025 compared to the same period last year, saving travellers about $29 per ticket.
- Global jet fuel prices have declined nearly 17% year-over-year, reducing the biggest operating cost for airlines.
- Airlines boosted seat capacity by 7% over 2019 levels and 5% year-over-year in May, easing supply constraints.
- International economy tickets from Australia fell 5% and business class fares declined 3% in early 2025.
- Virgin Australia’s partnership with Qatar Airways and Qantas’s planned routes to Auckland and Johannesburg later in 2025 are expected to intensify competition.