Australia’s two main airline teams have been chargeable for virtually 99 per cent of home flights within the first half of the monetary yr, in accordance with the ACCC.
The competitors watchdog in its newest Home Airline Competitors report famous “robust monetary efficiency and development” for each Qantas Group and Virgin Australia within the six months to January 2026, with home seat capability persevering with to extend.
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Qantas notched up report underlying earnings earlier than curiosity and taxes (EBIT) of $1.59 billion for the half, up 5.4 per cent year-on-year, whereas Virgin reported underlying EBIT of $490 million, up 11.7 per cent.
“The robust monetary outcomes reported by The Qantas Group and Virgin Australia show the continued resilience of Australia’s home aviation market, pushed by persistently robust passenger demand and beneficial working circumstances,” stated ACCC commissioner Anna Brakey.
“Practically 99 per cent of all flights have been serviced by both Qantas Group or Virgin Australia, with excessive limitations to entry within the aviation business contributing to a regarding lack of competitors and selection for shoppers.”
The ACCC additionally famous an increase in out there seats because of “new plane deliveries, redeployment of aircrafts throughout home networks, and higher use of current fleets”, although capability was nonetheless 3.3 per cent earlier than pre-COVID ranges.
“Common airfare costs additionally fell through the quarter to January 2026, however have been nonetheless 4.3 per cent increased in December 2025 in comparison with December 2024,” the fee stated.
“Passenger demand adopted seasonal patterns, remaining robust by means of November and December 2025, earlier than easing in January 2026 as holidays wound down and company journey demand remained low.”
In response to Brakey, development in seat provide continues to be outstripping demand, although Easter holidays and ANZAC Day are anticipated to drive a rise in demand for April leisure journey.
“It’s pleasing to see airways improve capability, providing two per cent extra seats in January 2026 than a yr earlier. We’ve now seen capability development outpace passenger demand for six months in a row,” she stated.
Information from the Federal Authorities’s competitors taskforce in January 2024 had confirmed that including extra opponents on a route can dramatically slash airfares.
Dr Andrew Leigh, the Assistant Minister for Competitors, pointed to figures from the taskforce displaying that airfares common 39.6 cents per kilometre on routes with just one service, 28.2 cents on routes with two carriers, and 19.2 cents with three.
“In different phrases, the value per kilometre is halved when three opponents fly a route in contrast with the scenario when there may be solely a single monopoly airline. With 4 or 5 opponents, the value drops additional nonetheless,” he stated on the time.
Qantas Group and Virgin Australia haven’t confronted a severe home competitor for the reason that collapse of Rex’s 737 operations in mid-2024.
