Why regional flights cost more in Australia
· BehindLines newsroom
According to Australia's Productivity Commission, plane tickets on regional and remote routes cost more on average than fares between major cities, mainly because serving small markets is more expensive. The public body's interim report came out this week, and ABC News set it beside the accounts of musicians hit by these prices.
What the data shows
The Commission, which was able to consult airline cost and revenue data that had been confidential until now, says that between 2023 and 2025 regional and remote fares averaged 13% more per kilometre than fares on major-city routes. On some short routes, the fare per kilometre is more than double. About 91% of the ticket price goes to operating costs, and the average margin is about 9%, close to the level on major routes.
ABC News reports other figures about the same report: long regional and remote flights 67% more expensive on average than routes between major cities, and short regional flights 173% more expensive per kilometre. We do not decide between these two presentations.
The report also says half of regional and remote routes run 10 flights a week or fewer, and more than a third of seats stay empty. Margins vary widely: below 5% on some short, remote routes, and clearly higher on mining routes.
Limited competition
The Commission states that in 2025 over 90% of passengers on regional and remote routes were carried by the Qantas Group or Virgin Australia, and that 72% of routes had only one carrier. It recommends removing barriers to competition, avoiding lasting aid to any single airline and, if the state supports routes, targeting people who could not otherwise afford necessary travel, notably for medical care.
The musicians' account
According to ABC News, Alan James, manager of the band Yothu Yindi, cites a return fare of 5,200 dollars between Gove and Brisbane and believes a concert in London would cost less than a date in an Australian capital. Stuart Kellaway, who manages the band King Stingray, says cost forced him to refuse three or four concerts over roughly the past month. A Qantas spokesperson told ABC that labour, airport charges and the fees for air traffic control are climbing faster than inflation.
Why it matters
The report is only interim: the Commission expects submissions until 22 December 2026 and is due to deliver its final report to the government in April 2027. It points out that air travel connects people in regional and remote areas to healthcare, work, family and essential services, and stresses that costs and margins vary widely from one route to another.