Travellers could face higher airfares in the coming years, with a new report from the Australian Competition and Consumer Commission (ACCC) revealing that airports will be looking to recover the money they have poured into infrastructure in 2024-25.
According to the watchdog’s latest Airport Monitoring Report, Australia’s four largest airports – Brisbane, Melbourne, Perth and Sydney – collectively invested $1.5 billion on aeronautical facilities in FY25, marking a 43% increase compared to the previous financial year.
The jump in infrastructure spend by all four airports is a notable shift from the comparatively low levels of investment following COVID-19.
It is a trend that shows no signs of slowing down, with the hubs collectively proposing to dedicate almost $20 billion in major infrastructure projects over the next decade.
“Ongoing investment is needed to ensure airports can continue to meet the needs of travellers and airlines, with Sydney, Melbourne, Brisbane and Perth airports collectively handling about 120 million passengers in 2024-25,” commented ACCC Commissioner Anna Brakey.
“Large capital programs are likely to place upward pressure on airport charges paid by airlines, which may result in higher airfares for passengers as these costs are recouped.
“It is important that airport charges reflect sensible and timely investment decisions, efficient costs and a rate of return that matches the risks involved,” Brakey added.
In response, the Australian Airports Association said, “Airport charges are typically set through long-term commercial deals and don’t fluctuate with demand the way airline ticket prices do”.
The ACCC report also showed that each of the four airports reported record revenues for aeronautical operations, earning a collective $2.9 billion in 2024-25.
This was despite passenger growth slowing to an increase of 4.6% compared to 13.7% growth in 2023-24. Perth Airport recorded the strongest international growth at 17.8%, followed by Brisbane (16.3%), Melbourne (8.3%) and Sydney (5.5%).
