Domestic airfares are down overall, but these popular routes are in rarefied air

FCM Consulting found domestic airfares tumbled 8 per cent from 2024 to 2025, although airfares for Melbourne and Adelaide, Sydney and Brisbane, and Melbourne and Perth, experienced a price increase of four per cent.

FCM director Felicity Burke said it was promising that airfares were down overall but it was still bad news for business travellers.

"While the eight per cent drop is a relief, the reality is, the flights that corporate travellers want to be on are not seeing the same reprieve as the domestic average," she said.

"The 'Golden Triangle' between Sydney, Melbourne and Brisbane makes up the majority of Australia's domestic travel, with Sydney to Melbourne the world's fifth busiest domestic route."

In a previous FCM analysis, the consulting company identified fares within the Golden Triangle were flattening after a decline in costs but had now reached the "bottom of the curve" with an uptick in fare prices.

"It's the age-old rule of demand driving pricing, and it's perhaps unsurprising that these routes are feeling the pinch, given Melbourne Airport recorded its busiest month in history in January 2025, and in the same month, Brisbane Airport exceeded pre-pandemic levels of domestic passenger traffic," Ms Burke said.

Still, the increase doesn't seem to have dampened spirits, with corporate travellers reporting that they intend to travel more.

A survey by Flight Centre revealed 45 per cent of their corporate customers intend to increase their travel spend in the current financial year, following a global trend.

"Corporations understand that they've had to open up their purse a little bit more," Ms Burke said.

"That's not just here in Australia, it's globally. The travel budgets have had to grow a little bit this year and last year."

Ms Burke attributed the budget increases to a strong rise in corporate companies realising the value of travel.

"The return on investment for a corporation is in the sales activity, client retention, and client growth," she said.

"That's where we're seeing those domestic corporate travellers still going well, [they] still have to go and connect with [their] customers."

It's unclear whether domestic fares in the Golden Triangle will experience a dip anytime soon, depending largely on the airlines changing their offerings.

"If the airlines maintain the current seat levels that they're offering today, over the next six months, we'll see just an incremental rise in airfares," Ms Burke said.

So, are there still deals to be had?

"The further you book it in advance, the cheaper the pricing points are for that seat that you're wanting," Ms Burke said.

"There are still bargains out there, and corporations are learning not to leave it until five days out."