“We are also seeing some very promising signs with economy fares, which is fantastic for travellers whose budgets don’t reach to the front of the plane.
“Generally, fares are now cheaper to most international destinations and we are starting to see some eye-catching deals through to London, which has been one of the hottest destinations for Australian travellers over the past few years.
“Our headline return economy fare to London from Sydney is currently $1202 for a March departure on Air China. This is less than half the average price travellers paid throughout 2023 and cheaper than the headline $1590 return fare that we advertised at this time 10 years ago.
“As we have seen historically, airlines compete very aggressively on price, so we expect to see further eye-catching deals for travellers in the months ahead as capacity increases and competition intensifies.
“As is always the case, the cheapest fares can be hard to secure so the best advice is to get in early and lock in a deal as soon as you can. There’s also huge value in using an agent – our experts are monitoring pricing in real time to make sure travellers get the best deal to suit their needs.”
Mr Kavanagh said return direct business class flights from Sydney to Los Angeles were currently on offer from just below $7300 on both Qantas and United Airlines for departures at various times between February 6 and November 21.
He said the Qantas offer was more than $4000 cheaper than the airline’s typical business class fare and more than $3000 cheaper than the average price travellers paid for return business class flights to LA during 2023.
Cheaper deals were available on indirect services from Sydney, with Air Canada offering a return fare via Vancouver from $6764 and Philippine Airlines offering a return fare from $5276. London is also calling for travellers who are looking for cheaper business class fares.
Mr Kavanagh said Flight Centre currently had return business class fares to London from Melbourne via China from $5281 for departures in March this year.
He said other carriers were also competing aggressively for premium customers travelling to the UK, with Etihad last week offering return flights from Sydney and Melbourne for sub $6000.
Premium carriers Qantas, Emirates and Qatar are currently offering return business class flights from Sydney for around $9000, about $1000 – or 10 per cent – cheaper than typical, recent fare levels and the average price paid by travellers last year.
“The airfare price wars that we are starting to see are great news for travellers and provide further evidence that airfare pricing is finally starting to normalise,” Mr Kavanagh said.
“In some instances, fares are now comparable to where they were pre-COVID, after an extended period of higher-than-normal pricing after travel restrictions were lifted.
