Statement from Qantas Domestic CEO Markus Svensson:
“The data quoted in the ACCCs report on fare increases for particular routes does not reflect the average fares customers are actually paying.
“The data is from the Government’s monthly fare monitoring which expressly states that it does not measure ‘average fares paid by passengers.’ It is a snapshot of the lowest fares available to purchase on a particular day three weeks prior to travel and does not factor in events which may impact demand and fares.
“The day selected in the latest report was 31 October, which is when Melbourne was hosting Coldplay. As such, demand was significantly higher on flights into Melbourne which means lower fares were snapped up early and the fares left available to purchase three weeks out were higher than usual. The average fare increase on these routes between July and October was significantly lower.
“If you look at fares in July to September this year compared to the same period last year, airfares across the industry have increased broadly in line with inflation. These increases were occurring while Bonza and Rex were still operating on domestic routes.
“On routes where there are capacity reductions, there will generally be less lower fares available and we are looking at how we can add more capacity where we can.”
Background
- The data source that the ACCC has used for the route data is the BITRE available here.
- The three routes highlighted by the ACCC were into Melbourne on 31 October, formerly operated by Rex.
- Fares between July and September are generally higher each year because of the timing of school holidays (July and September) and other major events in Spring, which was again the case this year. Averaged out over the year, fares have increased broadly in line with inflation.
- Qantas and Jetstar have regular domestic sales, with 1 million Qantas fares on sale today, with one-way fares from $109. See release here.
FARE DATA
Note. Comparing year on year removes seasonal fluctuations such as school holidays.