Average fleet age at Qantas is set to improve as new aircraft enter service, with Jetstar and Virgin Australia also updating their fleets to enhance cost structures and route flexibility.

As deliveries increase and capacity grows, competition should rise, offering travelers more choices and potentially lower fares as markets normalize.

Despite near-term price volatility, the travel outlook from Australia remains positive due to industry recovery and fleet modernization.

Australian international airfares jumped about 24% from November to December 2025, with travel costs up 5.8% for the year, reflecting lingering post-pandemic disruption and reduced competition.

Longer-term price stabilization is expected with higher competition and more routes as fleets expand and efficiencies improve.

Shifting to newer, more efficient fleets should lower maintenance costs and emissions, enabling more routes and strengthening the case for international links including Australia–UK and Asia-Pacific connections.

Industry observers expect a gradual recovery in deliveries despite recent production constraints at major manufacturers, which should help stabilize prices and expand capacity in coming years.

Global delivery forecasts anticipate around 1,800 aircraft in 2026, with continued growth from Airbus, Boeing, and Embraer that could heighten competition and capacity.

The aircraft industry is seeing a modest recovery in production that should gradually lower operating costs and, in the long run, help ease fares as capacity and efficiency improve.

This modernization aims to boost efficiency and reduce heavy maintenance costs, supporting lower operating costs and opening the door to new routes, such as Asia-Pacific links and direct Sydney–London operations.

Qantas is accelerating its fleet refresh, taking delivery of more than a dozen aircraft by June 2026, including seven Airbus A321XLRs and eleven A220s for QantasLink, along with an A350-1000ULR for Sydney–London to expand non-stop international service.

Analysts note that reduced competition during the pandemic continues to influence pricing, contributing to higher prices during peak travel periods like school holidays.