Aussie airlines have been put on alert after the consumer watchdog warned them not to sell travellers short, as they admit airfares are set to surge.With airspace closures in the Middle East decimating international travel and fuel costs skyrocketing, the shockwaves will soon spread to the domestic aviation industry.
Aussies with upcoming plans are already becoming spooked, with 25 per cent with a trip this year having delayed it, and 12 per cent cancelling altogether, according to data from Money.com.au.
The ACCC said international travel issues will soon come closer to home. (Getty)
The ACCC said the ripple effects will soon be felt closer to home, and admitted some of the regular rules protecting travellers may not apply due to acts of war.
“The consumer guarantees in the Australian Consumer Law are unlikely to apply if the airline delays or cancels a flight due to the actions of a third party, such as a government closing its airspace or implementing flight restrictions,” a statement from the ACCC said today.
However, airlines are being closely watched, with the ACCC set to crackdown on any airlines failing to properly reimburse impacted travellers or hiking up airfares too much.
“While market conditions will ultimately determine the cost of flying, we are closely monitoring price movements, market behaviour and the airlines’ representations to consumers,” ACCC Commissioner Anna Brakey said.
“[We] will act if there is behaviour that contravenes competition and consumer laws.”
Brakey said airlines usually carry more fuel than they need at any given time to protect themselves from short-term changes.
Airlines usually carry more fuel than needed, but prolonged disruption to supply chains could have a more substantial impact. (Louie Douvis)
Travellers could be hit hard by rising airfares as fuel prices rise and delays and airspaces closures continue. (Louie Douvis)
However, the longer this continues, the greater the impact will be on travellers.
“If jet fuel prices remain elevated for a prolonged period, airline costs may increase and this could ultimately lead to higher domestic airfares,” she said.
She encouraged travellers with upcoming trips planned to regularly look for updates, and to speak to their airline if that trip is overseas.
“We have been encouraging consumers with an upcoming international flight to contact their airline to understand their options,” she said.
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