Qantas-Virgin rivalry moves to international stage as Melbourne newcomer triggers fare war

The expansion of Delta Air Lines into Melbourne has triggered a welcome airfare price war with Qantas and Virgin both rushing to slash prices.

The slow return of Australians to the US is proving no deterrent to American carriers, with Delta Air Lines the latest to increase capacity with plans to start thrice-weekly flights from Melbourne in December.

The move will add 86,000 extra seats a year to Melbourne-Los Angeles return, and put downward pressure on trans-Pacific airfares in a win for travellers.

It also means Delta will join United and Qantas in operating to the US from Sydney, Brisbane and Melbourne, while American Airlines flies from Sydney and Brisbane.

Flight Centre corporate global chief operating officer Melissa Elf said based on their bookings, airfares between Australia and the US had already come down 10 per cent in the last quarter, compared to the previous corresponding period.

“More capacity and competition equals lower airfares, and while strong investment into Australian capacity from major US carriers — such as Delta and United Airlines — is great news for the cost of travel into the US, we still have some way to go,” said Ms Elf.

“With the volume of seats available on flights between Australia and the US hovering around 90 per cent or lower in recent months, compared to pre-Covid volumes, announcements like this one from Delta is exactly what’s needed to lift capacity and for prices to drop further.”

The planned expansion of Delta appeared to spur Qantas and Virgin into action, with both airlines announcing major international airfare sales within a day of each other.

Qantas was offering 400,000 discounted seats on almost 30 routes, including to the US, the UK, Asia and New Zealand.

Among the sale economy fares, were Sydney, Brisbane or Melbourne to LA return for $1199, and to New York and back for $1799.

Other discount economy fares included $499 for Sydney or Melbourne to Auckland, and $1749 for Sydney, Melbourne or Perth to London.

Seats from Brisbane, Sydney, Melbourne or Adelaide to Bali were available for $679 return, and Sydney or Melbourne to Tokyo for $949.

Qantas and Virgin’s rivalry has shifted to the international stage, with both discounting fares on overseas routes. Picture: Nigel Love Bridge.

Premium economy sale fares included Sydney and Melbourne to LA for $3299 return; and Sydney, Brisbane and Melbourne to New York for $4299.

Sale fares in business class started from $2799 for Sydney-Bali return, climbing to $7599 for Sydney, Brisbane or Melbourne to LA.

Virgin Australia was also shrinking its “economy lite” international fares, offering Melbourne-Queenstown return for $439, and Gold Coast-Bali for $509.

Other cheap fares included Brisbane-Port Vila for $479; Sydney-Nadi for $569 and Melbourne-Bali for $499.

Economy lite fares did not include checked baggage or seat selection.

The discounts came as Qantas continued to grow its international market share with the help of low fares partner Jetstar, ahead of Virgin’s proposed new flights to Doha with partner Qatar Airways.

International airline activity data for November, published by the Bureau of Transport, Infrastructure and Regional Economics showed Qantas carried 17.3 per cent of all passengers in and out of Australia, and Jetstar 11.7 per cent.

Virgin Australia’s share fell to just 2.9 per cent in November, and Qatar’s was 3.3 per cent.

Delta is not partnered with either Qantas or Virgin Australia, after being dumped by Virgin in favour of United a few years ago.

Originally published as Qantas-Virgin rivalry moves to international stage as Melbourne newcomer triggers fare war