With the start of SAA’s Perth flights last week, the increase in capacity on the route between South Africa and Australia has already pulled down airfares, reports Flight Centre Corporate Global (FCCG).
"As of this month (April), and for the first time since the pandemic, we have reached aircraft passenger seat capacity that is above or beyond pre-pandemic levels globally," Flight Centre Corporate’s MD, Melissa Elf, told c-mw.net, according to data from FCM Travel and Corporate Traveller.
Elf told theguardian.com that this increased capacity and competition on the route were what had resulted in reduced fares.
She said there were promising signs that international airfares to and from Australia would continue to fall beyond the short term, as major carriers, including SAA, Delta, Singapore Airlines and China Southern had recently announced or actually introduced new routes to Australia.
In an interview with travelnewsweekly.com.au Elf said SAA’s new flights to Perth would connect 40 000 passengers per year in each direction.
“The rate of air capacity compared with before the pandemic has been among Australia’s lowest across all international routes, sitting at 37% prior to these SAA flights recommencing,” she said.
“We’ll see that jump up to 61% of pre-pandemic capacity, and we’re anticipating it to hit around 90% by the end of the year.
Demand will drive capacity
According to Elf, South Africa and Australia’s economic relations will feed the demand for the new flights and encourage further increases in capacity, particularly due to the mining, oil and gas sectors for corporate travellers, and family and friend travel for leisure travellers.
Elf explained that FCCG data revealed that almost half of South Africa-Australia travel was related to mining, oil and gas, although there had also been large demand across the arts, entertainment, recreation, construction and education industries.
“We’ve seen an 8% uplift in demand from our corporate travellers moving between Australia and South Africa in the first quarter of this year, compared with the first quarter of last year,” Elf elaborated.
West Australian Tourism Minister, Rita Saffioti, said flights would be utilised by South African expats, their families and friends, and by tourists visiting Australia for events such as the Rugby Championship match in August at Optus Stadium.
“This is an important route for both SAA and South Africa. Perth has long been a favoured destination for South African travellers. Approximately 80% of our target market travels there regularly to visit family and friends,” Professor John Lamola, CEO of SAA told travelweekly.com.au.
