Flight Centre Corporate’s business travel consulting arm, FCM Consulting, has found that while the cost of living has risen, the cost of travel remains below the rate of inflation in the five years since the start of the COVID-19 pandemic.

“We’ve seen a gradual softening of domestic fares during the past 12 months, with a 12 per cent decline in the cost of an economy seat at the beginning of 2025 compared to early 2024,” says Felicity Burke, director, FCM Consulting.

“That has resulted in a relatively low five-year increase, despite the pretty sizable uplift we saw in the few years during and post-COVID-19.

“International business class tickets have fared the best during the past five years, with an overall increase of seven per cent, while domestic economy fares followed at a growth of eight per cent, and international economy fares rose by 12 per cent since 2019.

“When you compare the increase in the cost of travel against the rise we’ve seen for fuel, milk, bread and even a bag of apples, it really puts things into perspective.”

Burke says travellers can expect airfares to plateau in the short-to-medium term, with fares predicted to remain steady.

Photo at top: iStock/Jetlinerimages.