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Australia’s airlines not keeping pace with domestic demand
August 13th 2025
Growth in demand for domestic air travel in Australia post COVID-19 has exceeded available capacity, the country’s competition regulator reports. Read More » The Australian Competition and Consumer Commission’s (ACCC) Domestic Airline Competition report said available seats for domestic flights offered by the country’s major carriers were 2.8% fewer in June compared with the same month in 2019. The industry had "not yet filled the gap" created after Tigerair Australia stopped flying in 2020, the ACCC said. The loss of Rex Airlines on major capital city routes, after it entered voluntary administration, also removed seats from the market. "The withdrawal of Tigerair significantly reduced the capacity for domestic low-cost travel," ACCC commissioner, Anna Brakey, said. "Since then, the lack of growth in seat capacity to meet rising demand has likely meant consumers are paying more than they would have in a more competitive, better supplied market."
