According to The Australian Financial Review, the price of airfares on some of the country’s most popular routes remain more than 50 per cent higher than before the COVID-19 pandemic, with official data showing record levels in the past three months.
The travel industry is warning the higher domestic fares are part of a “structural reset” as airlines pursue higher margins, which could push down demand for travel after heavy post-pandemic patronage.
Australian Federation of Travel Agents chief executive Dean Long said “we’ve hit the peak for airfares,”. “We are not expecting any significant pricing shocks over the next year or a full retraction to the levels seen back before the pandemic. It has stabilised for the moment, but there will not be a massive change.”
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