The cheapest domestic airfares are getting cheaper

Peter Terlato 11 August 2016

Jetstar Qantas

But business class fares are getting more expensive.

Over the last 12 months the price of discount airfares across Australia has decreased, while restricted economy fares remain stable and business class fares have risen.

The latest aviation report on domestic airfare indexes from the Bureau of Infrastructure, Transport and Regional Economics (BITRE) reveals the lowest available best discount fare has fallen 3.7 points, from 61.9 in August 2015 to 58.2 in August 2016.

Best discount fares are the cheapest fares excluding baggage surcharges and are sourced from Qantas (Red e-Deal or Super Saver), Virgin Australia (Saver), Jetstar (Starter), Tigerair (Internet Discounted Fare) and REX (Rex Saver or Rex Net).

Business fares increased 5.3 points over the past 12 months, from 89.9 in August 2015 to 95.2 in August 2016.

Restricted economy airfares - Qantas (Flex), Virgin Australia (Flexi), Jetstar (Starter with Max) and REX (Rex Biz) - remained relatively flat over the past year, from 79.4 in August 2015 to a peak of 80.9 in January 2016 and back down to 79.5 in August 2016.

From the middle of February 2015, Qantas Airways ceased offering full economy fares for domestic travel. Therefore, it was no longer possible to generate an index for this fare category.

BITRE's indexes are constructed from monthly surveys of airline internet booking sites. The series is a price index of the lowest available fare in each class, weighted over selected routes.

Below is the domestic fares price index for the last 12 months.

If domestic travel isn't your cup of tea, find the most popular international airlines for Aussies travelling abroad.

Picture: Peterfz30 /

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