Qantas Cancels Twice Flights as of Virgin Australia in 2025: ACCC

2 godzin temu

SYDNEY– Qantas Airways (QF) has been cancelling flights at twice the rate of Virgin Australia (VA), according to the Australian Competition and Consumer Commission (ACCC). Virgin Australia recorded the lowest monthly cancellation rates among major domestic carriers over the past year.

The ACCC’s analysis also shows airfares across Australia’s largest airlines have risen sharply in 2025, outpacing the drop in jet fuel prices. On the busy Canberra (CBR)–Sydney (SYD) route, cancellations have been particularly high, with Qantas recording nearly triple the average rate in some months.

Qantas Cancels More Flights than Virgin

In the year to June 2025, Virgin Australia cancelled just 1.6% of scheduled flights, while the Qantas Group — which includes Jetstar (JQ) — cancelled 3.2%, or almost one in every thirty flights. Industry-wide, the average cancellation rate was 2.2%.

Jetstar performed better than both in June 2025, with only 1.1% of flights cancelled. However, Qantas’ record was dragged down by significant operational challenges on high-frequency routes, especially Canberra–Sydney, where its cancellations hit almost 15% in June, compared with around 7.5% for Virgin-operated Link services.

Qantas attributed the higher rates to adverse weather, such as strong winds in Sydney and fog in Canberra.

The airline said it has implemented initiatives to improve operational performance, noting that it still had the highest on-time performance among major domestic airlines over the past year, The Guardian reported.

Operational Performance and Delays

Flight punctuality has improved across the sector since 2023. Late arrivals dropped to under 18% in June 2025, the lowest level in three years.

Virgin had a standout month in May 2025, with only 15.2% of flights arriving late — the best result since monitoring began in 2022 — although that figure rose to 20.4% in June. Qantas recorded a slightly better 19.6% in June.

While reliability has improved, capacity remains below pre-pandemic levels. In June 2025, airlines operated 172,000 fewer seats than in the same month of 2019, despite passenger demand having fully recovered.

Rising Airfares Despite Falling Fuel Costs

The ACCC’s report found that average ticket prices in April 2025 were significantly higher than in April 2024, even after adjusting for inflation. This price increase coincided with a surge in demand during back-to-back public holiday periods.

Despite lower fuel costs in 2025, airlines generated more revenue per passenger in June compared with the same month in 2024.

The watchdog suggested that constrained seat supply is likely pushing fares higher than they would otherwise be in a fully recovered market.

Frequent Flyer Programs Under Scrutiny

With fares climbing, some travellers have turned to frequent flyer points to offset costs. However, the ACCC warned these programs may not deliver value, citing risks such as points devaluation, expiry, and limited redemption availability.

In the 2023–24 financial year, Qantas earned $511 million from its frequent flyer program, while Virgin earned $115 million — representing nearly a quarter of both airlines’ underlying earnings.

Qantas devalued its frequent flyer points in August 2024, reducing redemption value for customers.

Legal and Regulatory Pressure on Qantas

Qantas has also faced legal consequences over its past practices. In 2024, the Federal Court ordered the airline to pay a $100 million penalty for selling tickets on thousands of flights it had already decided to cancel.

In some cases, the fares remained on sale for up to 62 days after cancellation decisions were made.

The ACCC’s ongoing monitoring of cancellation rates, pricing trends, and loyalty programs suggests continued scrutiny of the airline sector in the months ahead.

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