Australian travelers are heading abroad in far more numbers than four years ago, and despite calls for change, there is little reprieve on the horizon.
Just two years ago, flyers looking to book round-trip flights to Europe for the summer season could do so for as little as $1,400 each.
Now anyone would be lucky to get a seat for less than $3000.
According to Flight Center CEO Graham Turner, those eager to leave the country and fly abroad will have to continue digging deep into their pockets to do so.
Just two years ago, flyers looking to book round-trip flights to Europe for the summer season could do so for as little as $1,400 each. Now anyone would be lucky to get a seat for less than $3,000
“If you want to travel at Christmas you need to book now or you’ll definitely have to pay quite a high price,” Mr Turner said.
“Families just don’t travel much anymore because you’re getting fares on $4,000 economy flights to Europe, and you have a family of four. It’s a lot of money for everyone – especially those on low incomes.”
Europe remains the most expensive travel destination for Australian flyers, with tickets costing between 40 and 90 percent more depending on the country.
Sun-drenched office workers looking to escape to Greece are staring at the heftiest price tag, with a staggering 90 percent price increase compared to 2019 prices.
The situation couldn’t be fairer for Sydneysiders returning to Hong Kong, with economy flyers facing a whopping $853 one-way ticket
‘Tickets are generally not that bad for other, closer routes. Fiji has only been about 15 percent more expensive, and Japan and Bali have been somewhere between 20 and 30 percent more expensive,” the Flight Center founder said.
‘But at the moment capacity is generally the problem on the long-haul routes to Europe, Britain and North America.’
Europe remains the most expensive travel destination for Australian flyers, with tickets priced between 40 and 90 percent higher depending on the country
For domestic travelers, average ticket prices have risen by a more modest 10 percent over the same period, which is expected to shift as demand grows during the school holidays and those who give up flying the most will be hardest hit.
‘People on lower incomes are the ones who are really affected by these high airfares, especially domestically, but even internationally, if they have a family of four, are trying to fly to visit a friend, to visit relatives in India or Europe to visit,” Mr Turner said.
Covid-19 and high inflation have put pressure on Australia’s travel sector; However, experts continue to recognize one major problem behind rising airfares.
On the first day of a Senate inquiry into aviation, which launched this week, a former Qantas economist revealed that ticket prices could fall by as much as 10 to 15 percent if more airlines were allowed to fly to the country.
“At the moment capacity is generally the problem on the long-haul routes to Europe, Britain and North America,” says Graham Turner of Flight Centre.
This came amid growing anger over a government decision to block Middle East-based Qatar Airways from adding 28 extra flights to Australia in July.
According to Mr Turner, who has headed his travel agency empire since the 1980s, the impact of strict air services agreements has long weighed heavily on Australia’s aviation industry.
‘This has been a problem for a long time. America has an open skies policy with a hundred countries. We have nine, so ours is one of the most constrained aviation markets in the world,” he said.
‘We need more open air and then the market will decide. There will be more airlines flying to Australia and prices will fall.”
Relaxed flight deals, also called “open skies,” are arrangements that do not limit the routes airlines can fly.
Australia has open skies deals with the US, Britain, China, India, Singapore, New Zealand and Japan.
The federal government has long been accused of keeping its air rules tight to protect the interests of local aviation giants like Qantas and Virgin Australia.
Appearing at the inquiry, head of the Australian Travel Industry Association (ATIA) Dean Long slammed “outdated” big brothering which he said had not changed since 1944.
Mr Turner said the government had backed itself into a corner with Qatar Airways and had no choice but to change its route.
“I think the public is so concerned about high airfares that they’re starting to realize they have no choice but to let other airlines in,” he said.
‘In the medium to longer term we could end up with greater variety and more flights. That may be a bright spot, but that will not be the case if the government continues to return their applications.’
A final report into the Senate inquiry into Australia’s bilateral air service agreements will be presented in October, with former Qantas chief executive Alan Joyce and Qatar Airways expected to appear. Whether the government decides to take action and move away from its old ways of opening up the airspace will remain the real holiday surprise.