Qantas has cancelled flights at double the rate of its main competitor, Virgin Australia, over the past year, according to a report from the Australian Competition and Consumer Commission (ACCC). The watchdog found that the Qantas group cancelled 3.2 per cent of its scheduled flights, or almost one in every 30, while Virgin cancelled just 1.6 per cent.
The industry average for cancellations was 2.2 per cent. Jetstar, a subsidiary of Qantas, outperformed both airlines in June, cancelling only 1.1 per cent of flights. The Canberra-Sydney route experienced above-average cancellations, reaching 12 per cent in June, with Qantas group flights accounting for nearly 15 per cent and Virgin-leased Link services half that.
In response, Qantas acknowledged that its cancellation rate was higher than it should be, despite having the most on-time flights among major domestic airlines over the past year. The airline stated it has implemented several initiatives to improve operational performance.
The ACCC report also highlighted that average air fares rose significantly in April 2025 compared to the same month in 2024, even after adjusting for inflation, driven by back-to-back public holidays. Despite falling jet fuel prices, airlines earned more revenue per passenger in June 2025 than in June 2024, while flying 172,000 fewer seats than in 2019, despite demand returning to pre-pandemic levels.
The watchdog warned that frequent flyer programs may not deliver value and could encourage consumers to spend more. These programs accounted for nearly a quarter of Qantas's and Virgin's underlying earnings in 2023-24. Last year, Qantas was fined $100 million for selling tickets on flights it had already decided to cancel, sometimes offering fares up to 62 days after the decision.
