The Australian Competition and Consumer Commission (ACCC) has released its latest Domestic Airline Competition report, highlighting the strong financial performance of Qantas Group and Virgin Australia for the first half of the 2024-25 financial year. Qantas Group reported earnings before interest and taxes of $1.5 billion, with a significant portion of $916 million coming from its domestic operations, which include both Qantas and Jetstar.

Qantas Domestic, which includes Qantaslink, was the largest contributor to the group's earnings, generating $647 million. This success is largely attributed to Qantas's dominant position in the corporate travel market, where it holds an 80% market share. The ACCC noted that Qantas and Jetstar together account for over 60% of domestic airline passengers, underscoring their market dominance.

Jetstar Domestic saw the most substantial earnings increase within the Qantas Group, rising by 53.7% to $269 million compared to the previous year. The airline has benefited from the absence of competitive pressure following the exit of Tigerair in 2020 and the collapse of Bonza in April 2024, allowing it to expand its market share and operating margins.

Virgin Australia, while not publicly disclosing half-year results, reported record profits for the same period, attributed to its restructuring under Bain Capital. Following the exit of Rex from key routes, Virgin Australia increased its passenger share to 34.4% in March 2025, up from 31.3% the previous year, aided by acquiring three Boeing 737 aircraft leases from Rex.

Despite weather-related disruptions in March, which led to a 4.9% decline in passenger levels, airlines anticipated a surge in travel for April due to school holidays and other events. The ACCC noted that the average industry on-time arrival rate improved to 80.2% in March 2025, reflecting better operational performance.

Airfare trends have shown seasonal fluctuations, with a 16.1% drop in average airfares from October 2024 to January 2025, followed by a 9.6% increase by March 2025. The ACCC's monitoring of domestic air passenger transport services will continue for three years, as directed by the Treasurer.