Rex deputy chairman John Sharpe has accused Qantas of gouging customers and lifting prices on domestic flights, as the regional airline intent on cracking the capital city market says its flights are now 85 per cent full.

Speaking before the carrier’s AGM on Friday, Mr Sharpe said high jet fuel prices and inflation had forced the industry to lift fares, but the prices charged by Qantas on popular domestic routes including Melbourne-Sydney were out of step with costs faced by the rest of the industry.