Soaring jet fuel prices are set to push airfares higher in 2018 as oil prices increase, signalling a potential end to years of cheap flights.
Domestic airfares, which remained relatively flat between mid-2015 and mid-2017, have already started to rise, jumping sharply between October and January, according to data compiled by the Bureau of Infrastructure, Transport and Regional Economics.
Global airfares were at their lowest levels for several years at the start of 2017. But 2018 is likely to see a return to higher airfares as airlines reduce capacity and raise ticket prices to offset higher fuel costs on the back of rebounding oil prices.
