Australia's aviation sector ""recovered"" from Covid-19 - Report

Australia’s aviation sector appears to have recovered from the Covid-19 pandemic as passenger levels and capacity returned to pre-pandemic levels, the Australian Competition and Consumer Commission's (ACCC) latest Domestic Airline Competition in Australia report reveals. Australia’s major airlines—Bonza, Jetstar, Qantas, Rex and Virgin Australia —carried 4.9 million domestic passengers in March 2024, which represented 98.8 per cent of passenger figures in March 2019. The airlines also flew around 6.2 million seats in March 2024, which was just below seat capacity recorded in March 2019. “After four years of instability, the domestic airline industry has returned to more typical seasonal levels that were last seen before the pandemic,” ACCC commissioner Anna Brakey said. “The increase to airline seat capacity has contributed to lower airfares for consumers on domestic routes. We hope to see this trend continue as the airline industry returns to a more stable market.” In February 2024, domestic passenger numbers exceeded 2019 levels for the first time since the pandemic. This surge in demand was driven by several major entertainment events taking place across the country in February which led to large amounts of people traveling domestically. Most notably, this included Taylor Swift’s concert tour in Melbourne and Sydney, as well as a World Wrestling Entertainment event in Perth. Australian travellers will have less choice for direct flights to regional destinations if low-cost airline Bonza is not able to recommence services after entering voluntary administration. Bonza had played a key role in connecting regional hubs across the domestic network as it tried to stimulate demand on new routes not offered by other airlines. The number of domestic routes in Australia had increased to 178 in March 2024, a net increase of 22 routes since 2019. In March 2024, before Bonza entered voluntary administration, the low-cost carrier offered 37 domestic routes. Of these, 35 connected regional locations and 30 were unserved by any other airline. “Since Bonza began operations, travellers benefited from more affordable airfares and the convenience of direct connections to various regional and holiday destinations otherwise not offered by other airlines,” Brakey said. Due to its small fleet size and exclusion of the busiest domestic routes from its network, Bonza had been unable to capture more than two per cent of the passenger market and competed with other airlines on just seven of its routes. ""While Bonza’s impact on competition had been limited to date, its presence represented an opportunity for greater competition to emerge in the highly concentrated domestic aviation sector,” Brakey said.