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10-Aug-2022 7:00 AM

Australia's domestic market nearing full recovery but short term problems blunt capacity

Analysis

Australia's domestic airline market is well on the way to recovery, but the competitive landscape has been transformed since the onset of the COVID-19 pandemic.

Shifting strategies from incumbents and the impending entry of a new airline are set to produce what could be the most dramatic and lasting transformation for the market since the start of the century.

After the start-stop recovery of 2020 and 2021, the rebound of domestic travel demand in 2022 has run ahead of expectations, mostly on the back of strong leisure/VFR demand.

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