Virgin carries more domestic passengers than Qantas in December, ACCC report reveals

Rex’s demise has helped Virgin Australia overtake Qantas as the biggest carrier of domestic travellers, the ACCC says.

Virgin Australia has overtaken Qantas as the biggest carrier of domestic travellers thanks to the demise of Rex, and the subsequent boost to Virgin’s fleet.

The latest airline monitoring report by the Australian Competition and Consumer Commission showed Virgin increased its market share by 3.1 per cent in the second half of 2024, hitting 35 per cent in December, ahead of Qantas on 34.6 per cent.

Virgin’s growth was partly thanks to the addition of three Boeing 737s, previously leased by Rex which collapsed in July, as well as the arrival of new Max 8s throughout the year.

Jetstar also gained ground in December, increasing its market share 2.3 per cent to 29 per cent.

The ACCC report noted the bumps in market share for both Virgin and Jetstar reflected the increase in leisure travel demand at year’s end, and the decrease in corporate demand.

It was also observed that passenger growth was outstripping seat growth, creating more crowded flights.

In December, Virgin Australia and Jetstar both saw double digit increases in passenger numbers of 15.8 and 11.2 per cent respectively.

Qantas carried 3.2 per cent more passengers than a year ago, despite capacity remaining below 2019 levels.

As a result the average load factor, or percentage of seats filled across all airlines, was 90.4 per cent in November 2024, compared to an annual average of 82.9 per cent on major city routes.

Virgin Australia had the highest load factor with an average of 93.4 per cent of seats filled on domestic flights.

Virgin and Jetstar enjoyed double digit passenger growth in December. Picture: Gaye Gerard

ACCC commissioner Anna Brakey said it was clear increases in seat capacity by airlines had been outstripped by passenger numbers, leading to fuller flights.

“While we recognise that delivery delays for new aircraft have presented significant challenges, we encourage all airlines to find other ways to increase their seating capacity to cater to the growing passenger demand,” said Ms Brakey.

Late last year, Qantas and Jetstar announced the addition of 300,000 seats in the first half of 2025 through a fleet reshuffle and the arrival of larger new aeroplanes.

The changes include the use of 271-seat A330s on more domestic routes, in the place of 174-seat Boeing 737s, and the arrival of A321XLRs with 197 seats from April or May.

Virgin Australia was also expected to take delivery of six more 737 Max 8s this year, providing much needed capacity, provided the Boeing production rate improved.

Despite the strength of travel demand and the limited supply of seats, the ACCC report said passengers had scored “some relief from high airfares”.

“Following a period of relatively higher airfares in October and November, airfares stabilised at the end of the calendar year,” said the report.

“Average fare revenue per passenger was 3 per cent lower in December 2024, compared to 2023.”

Travellers on city routes were benefiting more from lower fares than those flying regional and remote services, the report added.

Originally published as Virgin carries more domestic passengers than Qantas in December, ACCC report reveals