Airfares set to increase

JET fuel prices have surged to “record levels” which will result in airfares increasing over the coming months, the ACCC’s latest Airline Competition in Australia report has warned.

The consumer watchdog’s report stated that the monthly price of jet fuel reached its highest point on record in May 2022, with the margins between jet fuel and Brent crude oil prices widening from $10 per barrel through most of 2021 to over $80 by Apr, placing immense pressure on airline ticket prices as a result.

Higher demand for air travel as the sector recovers from the pandemic, the conflict in Ukraine, and refiners in North America and Europe focusing on meeting demand for diesel have conspired to increase the price for jet fuel.

Although the cheapest available discount airfares were at a low for flights in late-Apr, the ACCC observed that Rex’s airfares for post-Easter flights were $10 higher than its airfares for pre-Easter flights across many of its routes, while Virgin and Qantas followed Rex by hiking airfares by $10 in Apr on several routes, including services where both airlines compete with Rex.

Jetstar’s airfares generally remained stable during Apr.

The post Airfares set to increase appeared first on Travel Daily.

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