Aussie air travel among world’s most expensive: study
A new survey has shown that Australia is not exactly the cheapest country to catch a flight to – or from, for that matter.
OTA Kiwi.com has revealed the results of its second annual Flight Price Index, and the results show that Australia clocks in as the 69th most affordable country to fly from.
The average cost of a flight from Australia, per 100km, is $39.59, with Australia’s position on the list slipping by five spots, after it came in at number 64 in 2016.
Kiwi.com said the reason they create the Flight Price Index is “to help make travellers aware of countries that offer good opportunities for affordable travel”.
The OTA took into account short-haul and long-haul flights from 80 of the world’s most frequently visited countries and cities, calculating an average ticket cost per 100 km of travel, using high and low season flight costs for over a million journeys.
The research also makes a clear distinction between low cost and full service airlines to arrive at a conclusive country to country price index.
Flying in Malaysia was shown to be the most affordable, with the average price per 100km of travel sitting at $5.63, while other countries keeping Malaysia company in the top 10 included Bulgaria, India, Turkey, Romania, Indonesia, Portugal, Thailand, Sweden, and Spain.
Check out the table here:
Rank | Country | Avg cost $US/100km |
1 | Malaysia | 4.18 |
2 | Bulgaria | 4.65 |
3 | India | 4.96 |
4 | Turkey | 6.28 |
5 | Romania | 6.46 |
6 | Indonesia | 6.49 |
7 | Portugal | 6.50 |
8 | Thailand | 6.74 |
9 | Sweden | 6.96 |
10 | Spain | 7.08 |
So with Australia so far down the rank, which countries were more expensive than Australia?
Belgium was awarded most expensive air travel, coming in at 80th place with a cost of $73.55 per 100km travelled.
Rounding up the top 10 most expensive countries are the Netherlands, Qatar, Chile, United Arab Emirates, Solomon Islands, Serbia, Austria, Lebanon and Oman.
Kiwi.com’s CEO Oliver Dlouhý said, “Ticket prices fluctuate constantly for a myriad of reasons.
“Year on year changes can partly be attributed to fuel prices, sociopolitical shifts such as Brexit, recent elections and fluctuations in foreign exchange rates.
“The UK, for example, is seeing a larger number of Americans visit due to the weakening of the pound, whereas Egypt and Turkey saw a drop in ticket prices due to a decrease in demand due to regional turmoil.
“By tracking flight cost by country, travellers have more information with which to choose destinations that allow them to travel further on their budget. Travellers know what their ideal route, timing and price is, so we give them the tools to fulfil that.”
So why are Australian flights so expensive?
According to the ABC, higher labour costs are largely to blame.
“Labour costs make up about 30 per cent of total flight costs,” Dr Tony Webber, the CEO of Airline Intelligence & Research and a former Qantas chief economist, told the ABC.
Australian wages are also much higher than a lot of other companies – in particular the countries that came in the top 10 for affordable air travel.
Per the ABC, the International Labor Organisation (ILO) found that Australia’s average wages have grown by 10 per cent over the past 10 years.
By comparison, American wages only grew by about five per cent, while wages declined in Japan, Italy and the UK by two, six and seven per cent, respectively.
But pop across the Tasman, and our neighbours in New Zealand are doing a hell of a lot better in terms of flight affordability, coming in at a crazy low 17th place.
But it comes down to labour costs, with Dr Webber telling ABC, “New Zealand’s labour unit costs are lower than Australia, around 20 per cent, and they have more aggressive domestic competition.
“Whereas Air New Zealand used to be a monopoly, they are facing more intense domestic competition from Jetconnect.
“There is also very strong competition in the Tasman — to and from Australia.”
The ABC claims there does appear to be some correlation between a country’s wage levels and growth and flight prices.
However, the competition – or lack of – in Australian air travel could also be part of it.
“Australia will be quite expensive relative to other countries because we have a more concentrated aviation market,” Dr Webber told ABC.
“It’s a duopoly in the Australian domestic market — dominated by Qantas and Virgin.”
Over in the US, where flight affordability saw the country land in 30th spot compared to Australia’s 69th spot, the airline market is far more competitive.
According to Dr Webber, another factor driving up Australian flight prices is the lack of airport options for passengers.
“Australia has a small but sparse population, and our airports are very concentrated,” he told the publication.
“Effectively, Sydney and Melbourne airports are monopolies.”
Hold this up against other western markets like the US and UK, where for example, London has six separate airports, and New York has three.
Email the Travel Weekly team at traveldesk@travelweekly.com.au
air travel australia expensive kiwi.comLatest News
Two thirds of Australians support introduction of tourism tax, survey reveals
Can you guess which generation was the most outraged at the news? Hint: It is exactly who you think!
“The consumer really just wanted more classic reward availability” – customers underwhelmed by Qantas FF shakeup
All this consumer wants is to sit behind someone that doesn't push their seat back to near-horizontal levels.
Aussie travellers warned of ‘significant’ visa shifts in destinations including Chile, US and Vietnam
To be honest are biggest advice for having a layover in the US, is just don't.
Profile: Delta CEO Ed Bastian
Bastian says the airline business isn't for the faint hearted. We're sure Alan Joyce would agree!
Final Call: Travel DAZE Exec early birds are about to expire
Much like the auctioneer at the hottest sale of the year, we're giving you one more chance to jump at this deal!
Forget the weekend! Experience Gold Coast launches mid-week travel campaign
Your boss might be a bit bothered if you jet off mid-week, but you'll be the envy of all of your Instagram followers.
Victorian Tourism Industry Council warns of losing tourism dollars to NSW & QLD
Trendy cafe's hidden in CBD laneways can only get so many tourism dollars, clearly!
AIME 2024 rustles up $330m for APAC economy
This figure is a 65 per cent increase on 2023, much alike The Nibbler staff's alcohol consumption.
Amex GBT to purchase CWT for $871m
It's big deals like this that get a firm handshake - hence the sore hands over at the CWT and Amex GBT offices.
Boeing cleanout: CEO, chair to go as safety crisis plagues the manufacturer
CEOs are falling thick and fast these days. We should have started up a bingo game with their headshots in the office.
Star boss resigns, admits retaining NSW casino licence unlikely under his leadership
The CEO resigned after 18 months in the role. 'Another one bites the dust' rumoured to be heard playing in Pyrmont.
Corporate Traveller swings amateur golfers around the globe for World Golf Competition
How're your golf skills? Consider yourself a Tiger Woods or often get quadruple bogeys? We take after the latter.
Corporate travellers to spend big on Melbourne F1 despite financial pressures
Part of the attraction is sick days after the event as corporate travellers suffer creaked necks and blown eardrums.
Bonza officially kicks off Gold Coast-Darwin route
The Flying Purple Thumb is back at it with another route. We swear, we're going to make this nickname stick!
South West Sydney Tourism launches Western Sydney Tourism Awards
Penrith's 3 consecutive NRL premierships wasn't enough? The people of Western Sydney could fill the trophy cabinet more!
Hotels vs. Airbnb: Industry leaders at odds over who should pay accommodation levy
There's not as much gore in the Hotels vs. Airbnb saga as there is in Alien vs. Predator, but it's just as thrilling!
Singapore Airlines revamps premium economy with new menu, amenity kit
Felt Singapore Airlines was lacking "the sauce" (as the kids say). Bolster belief in the carrier's je na sais quoi here.
Business Events Adelaide set for 20th Destination SA event
Destination SA turns 20! Hopefully it's not celebrated with vodka cruisers and vapes like most 20th birthdays.
Boeing’s woes delay massive Virgin Australia order
This delay means Virgin staffers will be without that new plane smell, inspiring us to sell it in a can.
All the winners from the 2023 Qantas Australian Tourism Awards
Somehow missed this news recently? Good thing you're subscribed to our fabulous newsletter!
Corporate international travel from Brisbane up 30% YOY: Flight Centre
Queenslanders seem keen to go somewhere that actually serves good beer! Sorry, we actually like Great Northern.
Amora Brisbane undergoes $30m remodelling, geared up for MICE offerings
When $30m goes into an amazing hotel to get it geared up for MICE offerings, that's amore!
Corporate Travel Management’s CEO Laura Ruffles steps down
CTM confirmed that Ruffles will be stepping down due to a personal health issue, effective immediately.
Qatar Airways crowned World’s Best MICE Airline at World MICE Awards
You could say Qatar Airways really 'nabbed the cheese' with this one! Alright, we'll see ourselves out...
Qantas, Jetstar & Virgin hike airfares as supplier costs inflate
Supplier increases means you'll pay more. It's like pass the parcel, but instead of getting a present, you owe money.
NSW Central Coast wins global sustainability award for promoting ecotourism at ITB
NSW Central Coast jumped the gun on St. Patricks Day and got the green celebrations going early!
PHOTOS: RuPaul’s Drag Race stars hit Kings Canyon for Priscilla’s 30th anniversary
The stars have renamed the iconic spot 'Queens Canyon'. No name change to the adjacent 'Priscilla's Crack', however.
Air NZ to suspend Auckland-Chicago route amid aircraft troubles
Sorry Kiwis, your craving for authentic deep dish pizza will go unsatiated (or you could just fly with another airline).
Tasmanian Premier promises to build the world’s largest chocolate fountain if re-elected
If only sticky 6-year-old children could vote. Then the Tassie Premier would be guaranteed a victory!
The staggering amount invested in 2022/23 Australian tourism projects revealed!
Any guesses on how much it was? We'll give you a hint: It's between $1 and $9 trillion (hope this helps).
Marriott’s Bonvoy Lounge makes it a 5-peat at Formula 1 in Melbourne
If Formula 1 is so good, then why isn't there a Formula 2? Oh there is one... Never mind.
Virgin Australia posts $236m profit, but the outgoing CEO warns of turbulence ahead
Hrdlicka warns of tough times ahead, just after announcing she's leaving. We wonder if there could be a connection!
Ascott opens new 255 room property in Central Sydney
Bored of your bedroom and want 255 new ones to try? The new Ascott property is here to solve this very specific problem!
Work and play at the Radisson RED, Auckland
We aren't going to tell you what order to work and play in, just that you should be looking to do both at Radisson Red.
Swiftonomics 101: Just how much did fans spend travelling to see Taylor Swift?
Thought you'd heard the last of Swift, huh? Not in your Wildest Dreams could Swiftomania go out of Style!
Rex posts a $13.3m turnaround for 1H24, but still at a loss
Rex is slowly making its way back to pre-pandemic form. Much like us with our sporadic attempts at exercise.