News
Australia’s competition regulator monitoring impact of rising fuel costs on airfares
March 25th 2026
The Australian Competition and Consumer Commission (ACCC) has reminded airlines of their obligations under consumer laws when increasing fares due to higher fuel prices or cancelling flights due to the U.S and Israel-led war with Iran. Read More » The ACCC’s Domestic Airline Competition report noted airfares between Australia and Europe had "spiked in recent weeks amid increased demand for routes avoiding Middle East airspace", citing examples of an A$11,000 (US$7,695) fare for a one-way ticket from Sydney to Frankfurt. While airlines can change prices in response to demand, supply or input costs, the ACCC said they must not make false or misleading statements about the reasons for any price increases. "While market conditions will ultimately determine the cost of flying, we are closely monitoring price movements, market behaviour and the airlines’ representations to consumers, and will act if there is behaviour that contravenes competition and consumer laws," ACCC Commissioner Anna Brakey, said. On the domestic market, the ACCC report said January was the sixth consecutive month seat capacity growth had exceeded passenger volume growth. However, overall seat capacity in January was 3.3% below pre-COVID levels. By contrast, passenger volumes first exceeded pre-pandemic levels more than two years ago, in February 2024.
