Regional Australians Hit by High Airfares as New Report Highlights Cost Burden

The interim report found that short regional air routes are, on average, 173 per cent more expensive per kilometre than flights between major Australian cities, raising concerns about affordability, accessibility, and social isolation.

One example highlighted in the report involved a family of four paying A$3,200 for a one-hour flight from Kalgoorlie to Perth, a price comparable to the cost of a return airfare to Europe for a single traveller.

Catherine de Fontenay, Commissioner at the Productivity Commission, said frustration over regional airfares remains widespread.

“Many regional communities are frustrated by the high cost of flights,” she said.

“Previous government inquiries have looked at the issue, but until now we haven’t had the data or the evidence to understand what really sets the prices.”

The report was commissioned by Jim Chalmers, Australia’s Federal Treasurer, amid growing concerns about the loss of regional air services and rising travel costs.

According to the commission, airlines continue to reduce or withdraw regional routes due to higher operating expenses, including fuel costs, and weaker passenger demand compared with major city markets.

High Costs Affecting Families and Communities

The Determinants of Regional Airfares report received more than 100 submissions from individuals, community groups, and organisations, many describing the serious social consequences of expensive air travel.

One of the strongest concerns came from the Yalu Aboriginal Corporation in the Northern Territory, which warned that high airfare costs are preventing vulnerable children from maintaining family connections.

“Expensive airfares mean that children in care are deprived of the opportunity to thrive and indeed will continue to suffer the effects of being disconnected from family, well into their adult years,” the organisation said in its submission.

Community groups argue that affordable air travel is not simply a transport issue but a matter of social wellbeing, healthcare access, family connection, education, and economic participation for people living in regional Australia.

The Productivity Commission is expected to continue examining the factors driving regional airfare prices as policymakers consider potential measures to improve accessibility and affordability for communities heavily dependent on aviation services.