iscover
Airline peak bodies are seeking urgent meetings with the Federal Government over the upcoming increase in the Passenger Movement Charge (PMC).
In a letter to Transport Minister Catherine King, the Board of Airline Representatives of Australia (BARA), alongside the International Air Transport Association (IATA) and Airlines for Australia and New Zealand (A4ANZ), expressed concerns about the $10 increase flagged in this year’s budget.
This content is available exclusively to Australian Aviation members.
A monthly membership is only $5.99 or save with our annual plans.
- Australian Aviation quarterly print & digital magazines
- Access to In Focus reports every month on our website
- Unlimited access to all Australian Aviation digital content
- Access to the Australian Aviation app
- Australian Aviation quarterly print & digital magazines
- Access to In Focus reports every month on our website
- Access to our Behind the Lens photo galleries and other exclusive content
- Daily news updates via our email bulletin
- Unlimited access to all Australian Aviation digital content
- Access to the Australian Aviation app
- Australian Aviation quarterly print & digital magazines
- Access to In Focus reports every month on our website
- Access to our Behind the Lens photo galleries and other exclusive content
- Daily news updates via our email bulletin
According to the industry groups, airlines cannot collect the new $80 charge – slated to come into effect on 1 January – until it is formalised, but tickets have already been sold for flights departing in early 2027. The PMC is added to the ticket price for all passengers departing Australia.
“Put simply, airlines cannot implement the PMC as stated. In practice, the increase of the PMC is an irrecoverable industry cost on thousands of air tickets already sold and ticketed,” the letter read.
“As the PMC increase has not yet been formalised/gazetted since the budget announcement, it is not permissible for carriers to collect an undocumented charge from consumers.
“Until that occurs, regardless of the departure date booked by the passengers, airlines can only recover the currently-filed AU$70 PMC.
“Airlines can advise when remitting the PMC how many passengers were ticketed before the actual date of formal implementation, and how many after, but they cannot recover the cost of the increased PMC from already-ticketed passengers.”
In a media statement, A4ANZ chair Graeme Samuel pointed to Jetstar’s decision to suspend two trans-Tasman routes as an example of the impact of these increased costs, which also include higher AusCheck credentialling fees for aviation workers, proposed hikes in air traffic management charges by Airservices, and “substantial new compliance costs” from sustainability and accessibility reforms.
“Individually, each increase may appear manageable. Collectively, they represent a growing cost burden that ultimately flows through to consumers and undermines the viability of marginal air services,” he said.
“Governments rightly recognise the importance of aviation in supporting tourism, trade, investment and regional development. However, every additional tax, fee and charge makes it more expensive to fly and more difficult for airlines to sustain services.
“If policymakers continue to treat aviation as a source of revenue rather than an essential economic enabler, Australians and New Zealanders can expect fewer route options, less competition and higher airfares.
“Affordable air travel should not become a luxury. It is vital to regional connectivity, economic growth and social inclusion. Governments must carefully consider the cumulative impact of their decisions before more services are lost and more travellers are priced out of the market.”
The Department of Home Affairs, which is responsible for the PMC, has been contacted for comment.
Want to see more stories from trusted news sources?
Make Australian Aviation a preferred news source on Google.
Click here to add Australian Aviation as a preferred news source.
