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Standard domestic economy airfares across Australia have plummeted in recent months and are now near the lowest on record following adjustments to Virgin Australia’s fare availability.
The airline in November adjusted its sales policy, making its cheaper economy fares available for longer – prior to the changes, customers booking closer to their travel date would likely have only been offered the more expensive Flex fare, as opposed to the lower-priced Lite and Choice options.
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According to new BITRE data released by the Department of Transport, “restricted economy” fares, or standard economy fares, have crashed since high points in September and October following the end of Rex’s jet operations, and are now at 55.9 per cent of base period.
Meanwhile, sales fares, known as “best discount”, have fluctuated and are at 64.7 per cent of the base period price in 2003 as of March 2025.
The moving 13-month average of restricted economy airfares shows a precipitous drop of around 40 points since October, with the recent low-water mark in January 2025 sitting at 55.2 per cent of July 2003 prices.
“In line with our mission to be Australia’s most loved airline, we are increasing the availability of Fare Brands for customers on domestic and international short haul flights when they book with Virgin Australia,” Virgin Australia said in a document seen by Australian Aviation.
“Previous to these changes, once Lite and Choice inventory were sold out customers would have had to purchase a Flex fare.
“From 6 November 2024, if there are Economy seats available there will be more fares available, providing travellers with greater choice of fares available that meet their needs
“These changes enable all travellers to access a greater range of fares, with more flexibility, choice and value regardless of when they book with us on all Virgin Australia-operated domestic and short-haul international flights.”
Business-class fares have also dropped since late last year, though less steeply, sitting at 54.7 per cent of base levels in March.
BITRE’s domestic airfare index monitors changes over time in the price of Australian air travel. The current system began in October 1992 and is presented as a price index in various fare classes, based on the top 70 routes.
BITRE defines the best discount as the cheapest fare available, excluding baggage surcharges, and covers Qantas, Virgin, and Jetstar.
Mark Fisscher
says:Try adding a reservation for a seat on Virgin & see how much it costs you now, $75.00 for an exit row domestically Sydney / Melbourne zero fares have gone down in total outlay. (plus, seats are now zoned for cost, a large % used to be free)