Regional flights cost Australians 11 per cent extra
Australians pay 11 per cent more per customer and 13 per cent more per kilometre on regional flights.
The Productivity Commission found that people flying regional routes around Australia pay significantly more than city routes. On some routes, fares per kilometre more than double city prices.
Most regional and remote routes carry less than 15,000 passengers a year. Around 10 flights or fewer each week take off with at least one third of seats empty.
Competition is low. 90 per cent of passengers use Qantas Group or Virgin Australia.
High costs and limited choice raise concerns about whether these services can stay viable. The commission found that 91 per cent of regional airfares go to operating costs.
This leaves a nine per cent profit margin broadly comparable to city routes. However, mining routes average 20 per cent margins.
- 11 per cent
- Price premium per customer
- 13 per cent
- Price premium per kilometre
- 91 per cent
- Operating cost share of fares
Why it mattersRegional and remote communities rely on air travel for health services and work. Fewer airline options and higher fares make these routes increasingly risky.
AustraliaAustralians in regional and remote areas face ongoing cost barriers to accessing healthcare, jobs and connections outside their communities as airline viability tightens.
✓ Claims checked against the source. checked 4 h ago
