International airfare trends diverge in Australia and New Zealand

International airfare trends show diverging patterns between Australia and New Zealand. In Australia, the Airfare Inflation Index compiled by FCM Travel and Corporate Traveller indicates that average one-way international economy fares booked from Australia fell 7% between the first half of 2023 and the first half of 2026. This decrease occurred despite a broader 11% rise in the cost of living, with economy fares rising more slowly than the costs of essential goods like apples, coffee, and bread.

Conversely, New Zealand has seen a significant increase in travel costs. Stats NZ figures report that international airfares rose by 21.5% annually in the year leading to August. Industry experts attribute these hikes to rising jet fuel prices driven by conflicts in the Middle East, as well as increased aviation system costs, including airport landing charges and airway levies. Despite these higher prices, travel demand in New Zealand remains resilient, with resident arrivals returning to levels seen in 2019.