New data from Flight Centre Corporate’s FCM Travel and Corporate Traveller reveal global and domestic air capacity have reached pre-pandemic levels for the first time, and international airfares out of Australia have seen a drop as a result.
“As of this month [April], and for the first time since the pandemic, we have reached aircraft passenger seat capacity that is above or beyond pre-pandemic levels globally,” said Flight Centre Corporate global COO Melissa Elf (pictured).
“We’re seeing this directly correlate to decreasing airfares, which is great news for our corporate travellers, who rely on travel to keep their businesses ticking, and win new work,” Elf continued.
“An analysis of key international routes for Australian travellers has found fares on some routes dropped by up to 25%, and with more and more capacity and competition being introduced to the market it’s a trend we’ll continue to see throughout the rest of the year.
“The Global Business Travel Association predicted a growth in business travel of 27% in 2023 in Australia. It has also revealed that in 2024 for every dollar spent on business travel, a business would see $145 return in sales.
“We still have some countries that are lagging in their international and domestic capacity, but some that have come back stronger than ever before. It’s evident in the data that the airlines and airports with the highest levels of capacity are seeing the best rates for passengers.
“Australia’s international capacity is currently at 95%, so we’d like to see this continue to
increase. We are anticipating that to tick up to 98% next month, and hover around that mark for the next six months.
“It will also vary depending on the port of departure – for example, international seat capacity out of Perth is at 111%, and Sydney is nearing full capacity at 97%.”
The figures are backed up by new international capacity announcements like recent ones from Delta Airlines, Singapore Airlines, China Southern and Jetstar.
|
Average fare in Q1 2024, outbound from Australia |
Average fare in Q1 2023, outbound from Australia |
Percentage change in fare in Q1 2024 compared to Q1 2023 |
Current seat capacity from Australia
compared to pre- pandemic capacity |
|
| Japan | $1,560 | $1,982 | -21% | 130% |
| Qatar | $1,888 | $2,519 | -25% | 109% |
| Papua New Guinea | $1,068 | $925 | +15%* | 102% |
| United Kingdom | $2,220 | $2,709 | -18% | 100% |
| Singapore | $1,330 | $1,567 | -15% | 96% |
| New Zealand | $901 | $1,176 | -23% | 88% |
| United Arab Emirates | $1,861 | $2,406 | -22% | 84% |
| China | $1,393 | $1,673 | -17% | 81% |
| United States of America | $1,958 | $2,484 | -21% | 70% |
| Hong Kong | $2,186 | $1,880 | +16% | 63% |
Data attributed to FCM Travel and Corporate Traveller.
*Papua New Guinea has nearly doubled its seat capacity since June 2023. It reached 100% capacity as of March 2023. Over the next six months we are expecting to see fares soften.
