Domestic Airlines in Australia - Market Research Report

Flight risk: As domestic tourism and international travel to Australia soar, revenue is taking off

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.

Trading conditions have been mixed for the Domestic Airlines industry over the past five years. The COVID-19 pandemic has significantly restricted air travel volumes over the three years through 2021-22. Most state governments closed their borders in early 2020, all but halting interstate travel. Industry revenue further declined in 2020-21 as COVID-19 restrictions continued to limit air travel. However, monthly passenger numbers rose steadily during the same year, offering some relief to airlines. Industry demand returned to growth in 2021-22. The outbreaks of the Delta and Omicron COVID-19 variants severely limited passenger numbers over the six months through December 2021, but the industry has rapidly recovered since then. Overall, industry revenue is expected to decline by an annualised 4.0% over the five years through 2022-23, to reach $12.2 billion. A strong recovery to near pre-pandemic levels is anticipated in 2022-23, with growth of 57.9%. Domestic airlines primarily operate aircraft on scheduled routes within Australia to transport both passengers and freight.