Qantas complaints soar, because the ACCC calls on airways to chop home airfares

The Australian Competitors and Shopper Fee has warned airways to chop home airfares, as customers proceed to pay properly above 2019 costs.

Home airfares have declined after a hitting a 15-year excessive in December 2022, reducing by a 3rd in January 2023, however persons are nonetheless paying far more to fly than they had been earlier than the pandemic.

The typical home ticket value throughout all fare sorts had been 29 per cent greater in nominal phrases (precise costs) in January, or 13 per cent in actual phrases (after being adjusted for inflation) than it was in 2019.

It comes as airways like Qantas report bumper income. 

The info comes from the Australian Competitors and Shopper Fee’s (ACCC) newest Airline Competitors in Australia report.

“Whereas it’s optimistic to see airfares fall from file highs in 2022, passengers are nonetheless typically paying extra to fly as we speak than they had been earlier than the pandemic,” ACCC Commissioner Anna Brakey mentioned.

After months of airways chopping capability, which has contributed to greater airfares, the trade made 5.9 million seats accessible in January 2023 — probably the most in additional than six months.

In January, Qantas flew at 102 per cent of its pre-pandemic capability, Virgin at 96 per cent and Jetstar at 84 per cent.

“Airfares usually come down after the Christmas journey peak because of a seasonal lower in demand, nonetheless, a few of this discount can also be defined by the airways rising their seat capability,” Ms Brakey mentioned.

The ACCC report notes airways had been in a position to improve efficiency with out considerably compromising on-time efficiency. 

Nonetheless, cancelled flights and delayed arrivals had been nonetheless properly above the long-term common for Jetstar specifically. Virgin was additionally properly above the long-term common for delayed arrivals.

ACCC warns airways to chop airfares 

The watchdog additionally notes the worth of jet gas has fallen just lately after peaking in mid-2022 due to Russia’s invasion of Ukraine. 

Jet gas costs decreased to $166 per barrel in February 2023, a 35 per cent fall since a file excessive in June 2022, however nonetheless stay above 2019 ranges, the ACCC’s report notes. 

Mr Brakey mentioned that ought to end in cheaper airfares.

“The value of jet gas has been trending down, which ought to allow airways to cut back airfares additional in coming months,” Ms Brakey mentioned.

Qantas complaints soar

Qantas received a particular point out within the ACCC’s report as a result of it is probably the most complained-about airline. 

The ACCC acquired 1,740 contacts involving Qantas in 2021–22, probably the most of any firm and 68 per cent greater than the earlier 12 months.

The variety of contacts involving Qantas was over a 3rd greater than the second most reported firm, in keeping with the report.

Prime complaints included points round refunds and flight credit associated to flights cancelled because of COVID-19 journey restrictions, and delayed and cancelled flights in mid-2022. 

Complaints to the regulator associated to Jetstar had been down 33 per cent from 2020-21 to 544, and Virgin Australia fell 27 per cent to 359.

“As Australia’s largest airline, and an airline that typically costs a premium to fly, customers anticipate a greater service,” the ACCC report notes.