Domestic fares were higher in all categories in September, with travellers paying more for seats at both the pointy end and down the back of the plane.
The Bureau of Infrastructure, Transport and Regional Economics (BITRE) monthly measure of domestic airfares showed the best discount, restricted economy and business class fares were all up in September compared with the prior year.
The index measuring best discount domestic fares was at 68 index points in September 2015, compared with 61.2 points in the same month a year earlier.
Meanwhile, the restricted economy index was at 80.4 points in September, compared with 76.9 points in the prior corresponding period.
And premium fares have also increased, with the BITRE index for business class at 90.5 points, up from 85.9 points a year ago.
Rising ticket prices have come as Australia’s two major airline groups, Qantas and Virgin Australia, have reported improving yields – or average airfares per passenger – in recent times amid slower capacity growth in a still subdued local market.
And capacity reductions at both Qantas Domestic and Virgin helped both airlines reduce the level of discounting that had been present in recent years in an effort to fill flights.
Qantas said in its most recent traffic figures published on September 1 yields at both Qantas domestic and Jetstar domestic were higher in July, compared with the prior corresponding period, amid improved load factors and flat capacity growth.
Meanwhile, Virgin’s full year results presentation noted yields for its domestic operations rose 5.2 per cent during 2014/15 financial year.
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