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The collapse of Bonza and Rex alongside a struggle to obtain new aircraft led to 4 per cent fewer routes being flown across Australia during the last financial year.
A new report by Airservices Australia also reveals total domestic flights declined slightly by 1 per cent during the same period, even as passenger numbers increased by 2 per cent. The unusual disparity led to domestic load factors hitting a huge average of 85 per cent, in a huge boon for Qantas and Virgin.
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Rex collapsed into administration in July last year and grounded its 737 services between capital cities, while Bonza was liquidated after suspending routes in April.
Separately, post-COVID-19 supply chain issues and a global talent shortage have severely slowed the delivery of new aircraft from both Boeing and Airbus.
In response, Qantas has pledged to acquire four midlife 737-800s by the end of the year, renovate more than 40 of its existing domestic cabins and shift its 13 Jetstar Asia A320s to Australia and New Zealand.
Virgin, meanwhile, has said it will convert 12 of its 737 MAX 10 orders to MAX 8s to speed up their arrival and has already acquired some of Rex’s old aircraft.
The Australian Aviation Network Overview for FY25, released by Airservices Australia, is uniquely able to draw on both its own data and BITRE information released by the Department of Transport.
“Domestic passenger demand continued to outpace available fleet capacity, resulting in record load factors particularly along major corridors,” it concluded.
“However, aircraft supply constraints and reduced airline competition are limiting route expansions. Meanwhile, general aviation is experiencing steady growth, especially in flight training, reinforcing Australia’s position as an attractive destination for aviation education.”
Despite the end of COVID-19 restrictions years ago, the industry is still struggling globally to fully recover from its effects.
In June, for example, new government figures revealed fewer international travellers visited Australia last year compared to pre-pandemic 2019.
Analysts have blamed the stuttering comeback on cost-of-living pressures, conflict in Europe and the Middle East, as well as a rise in favouring video calls for meetings over business travel.
“In 2024, Australians continued to prioritise travel and demand for domestic trips remained high, particularly short trips close to home,” Grant Ferres, head of Tourism Research Australia, said.
“However, overall growth was muted and travellers adjusted spending patterns in light of household financial pressures. On the international side, there was continued growth in arrivals from many source markets, with key markets in our region standing out.
“However, the total number of short-term visitor arrivals remained lower than the previous peak, which remains a key challenge for some parts of the visitor economy. Importantly, the visitor economy expanded and adapted to service tourism demand in Australia in 2024, however, some supply constraints were still noticeable.
“The high level of government and private investment taking place in the sector will give confidence for future growth.”
Despite the stuttering recovery, Brisbane Airport in March became the first of Australia’s big three airports to surpass pre-pandemic levels domestically.
