AviationAirline says ‘supply and demand’ is behind huge fare hikes.

Consumer watchdog on the tail of Qantas

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The Australian Competition and Consumer Commission wants Qantas to explain why air fares have risen so dramatically.
The Australian Competition and Consumer Commission wants Qantas to explain why air fares have risen so dramatically. Photo Credit: Adobe/jovannig

Australia’s consumer watchdog is keeping a close eye on national carrier Qantas as fares on some routes more than double when compared to pre-pandemic prices.

Qantas has denied that it is holding back capacity to drive demand, but the Australian Competition and Consumer Commission wants to check all the same.

Qantas says it has reduced its capacity to cope with issues such as sick leave and supply chain problems

In its latest Airline Competition in Australia report, the ACCC said it would be concerned “if the airlines withheld capacity in order to keep airfares high”.

Qantas is operating at about 95% of pre-Covid levels.

Andrew McGinnes, Qantas's group executive of corporate affairs, told the ABC, "There are structural issues that we have around sick leave, around supply chain. That means we need more resilience. "The way we get that is by reducing capacity. It's very much about supply and demand.”

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