“The pent-up demand for air travel that characterised the industry for most of last year is starting to ease,” Ms Cass-Gottlieb said.
“Consumers appear to have become more price-sensitive as cost-of-living pressures have increased,” she added.
The report has also found that expanding new airlines, such as Rex and Bonza, has created an opportunity for the domestic airline industry to enter a more competitive period.
Although the positive development Rex and Bonza brought to the competition, Ms Cass-Gottlieb said their share market was small, and there would be barriers to growth.
“While our airline monitoring direction is ending, we’ll continue to watch for anti-competitive behaviour and unfair business practices in the airline industry.”
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