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BITRE’s domestic air fares index for March has shown declines across most fare categories compared to the same time last year.
The biggest decline was in the best discount category, with the index falling to 62.3 compared to 90.4 the year before. The restricted economy index declined by 5.5 points to 93.6, while the full economy index increased by 1.1 points to 91. The business fare index saw a minor decline of 0.7 points.
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The fall in fares appears to show that domestic yields still appear to be under pressure, although the business market seems to have stabilised. Increasing competition between low cost carriers Jetstar and Tiger Airways at the discount end is likely to see discount fares continue their restrained growth.
