Why domestic airfares have soared to a two-year high

Domestic airfares have soared to their highest prices in almost two years.

The latest Airline Competition in Australia report from the Australian Competition and Consumer Commission reveals the cheapest economy airfares cost 56 per cent more in August than in April.

It comes as airlines are hit by serious staff shortages and very high fuel prices.

CEO of Flight Centre, Graham Turner, said domestic flights are “a different kettle of fish to international”.

“Generally domestic capacity is back to 90 or 95 per cent,” he said.

Press PLAY below to hear what’s behind flight price hikes