Expect to pay more for Qantas, Qantas Link, and Jetstar flights very shortly.
It is the third hike for the Qantas group since October last year, and fares will go up by 2 to 3 per cent this week.
Qantas told Travel Weekly that the airline and its budget subsidiary, Jetstar, have increased fares “to help cover cost increases passed on from a range of suppliers”.
“This increase reflects inflationary pressures being felt more broadly across the economy as well as some above-inflation rises in industry costs,” the spokesperson said.
Qantas increased fares by 3.5 per cent in October 2023 and again in February by 2.7 per cent.
The airline’s trans-Tasman fares have gone up by $10 to $20, and up to $10 for Jetstar, but other international routes have remained steady or been discounted through sales.
Qantas is also increasing its lounge prices. It has informed members there will be a 17 per cent price hike to access the airline’s domestic club lounges from next month.
For members, the price break down will see annual fees for new members jump from $699 to $828, including the $129 joining fee, while current members looking to renew will rise from $540 to $629.
Virgin follow suit
Virgin is flagging it will increase its fares in the next few weeks.
It comes after a union inquiry into price gouging claimed Qantas’ decision to reduce flight capacity and increase airfares in 2022 may have contributed to the national inflation rate, which encouraged the Reserve Bank to raise interest rates.
The Australian Consumer and Competition Commission warned the airlines in 2022 that they would be closely monitored to ensure they weren’t slowing their return to full capacity to keep airfares artificially high.
In its quarterly airline competition report at the time, the Australian Competition and Consumer Commission (ACCC) found a 27 per cent increase in all airfare types between October 2019 and October 2022.
“We accept that the airlines are still experiencing some pandemic-related resource challenges, but the ACCC will be monitoring them closely to ensure they return capacity to the market in a timely manner to start easing pressure on air fares,” ACCC commissioner Anna Brakey said at the time.
Have you noticed airfares going up? Does it influence your decision to travel? Why not share your opinion in the comments section below?
Also read: Humbled Qantas faces multi-million dollar compensation payout
