Post-COVID Revival: Australia’s Aviation Industry Bounces Back After Four Years

It took four years and one of the most eagerly awaited music tours in recent memory, but Australia's aviation industry has finally bounced back from the effects of the COVID-19 pandemic. According to the Australian Consumer and Competition Commission (ACCC), passenger numbers in March reached nearly 99 percent of 2019 levels, and February marked the first month to surpass its pre-pandemic equivalent. The ACCC attributed the surge in air travel demand largely to Taylor Swift's seven-show tour in Australia.

By J Prakash

The ACCC's Domestic Airline Competition report noted, "Certain one-off events led to a significant increase in domestic passenger activity in February, compared to typical observations for that month." It highlighted that "Taylor Swift's performances, which drew over 600,000 attendees across two weekends exclusively in Melbourne and Sydney, notably contributed to this spike. Airlines responded by increasing capacity; for instance, Qantas added 67 flights, amounting to over 11,000 seats on Melbourne and Sydney routes."

The report also touched on the recent collapse of Bonza. Although administrators are exploring options for the company, the ACCC's report indicated that a return to operations is unlikely. The consumer watchdog pointed out that the new airline's closure is a setback for the sector and travelers seeking more affordable airfares. "Since Bonza started its operations, passengers benefited from lower airfares and direct connections to regional and holiday destinations that other airlines did not offer," said ACCC Commissioner Anna Brakey. "While Bonza's impact on competition was limited so far, its presence provided a chance for greater competition in the highly concentrated domestic aviation market."

 

"After four years of uncertainty, the domestic airline industry has returned to more typical seasonal levels last seen before the pandemic," Brakey added.

A report released today by the federal government's Department of Infrastructure, Transport, Regional Development, Communications, and the Arts showed that on-time arrivals and departures for April were below the long-term averages of 81 and 82.1 percent, respectively. Meanwhile, industry-wide cancellations were at 2.8 percent, higher than the long-term average of 2.2 percent.

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