Australian air fares continue to climb post-Tiger grounding

The upward pressure on domestic Australian air fares, which started after low-cost operator Tiger Airways was grounded in Jul-2011, is showing no signs of relenting. Fare decreases are expected from the peak September period to the comparatively slower October, but the drop this year is lower than the corresponding drop in 2010, suggesting fares - which soared after Tiger's grounding - are not plateauing.

Fares in Oct-2011 dropped 11.3% from Sep-2011, a lower decrease than the previous year's drop of 15.6% from Sep-2010 to Oct-2010.

Although jet fuel has surged in the past year, and could explain an increase in ticket prices, Australian air fares were relatively flat until Tiger's grounding saw fares increase.