While OAG has predicted that 2026 could be a year of record revenues for some airlines, an Australian industry expert has told Travel Daily the situation is far more complex than that and could lead to a win for travellers.
Recently OAG’s chief analyst John Grant shared that, “Based on current demand and capacity trends, 2026 looks set to be a good year with the potential for record levels of profitability for most airline CEOs”.
He even suggested that “some of the less efficient national airlines could break even”, with strong demand despite economic growth concerns.
CVFR Travel Group CEO Ram Chhabra, however, believed the Australian market had additional complexities that could challenge Grant’s theory.
“Airlines globally are preparing for a strong year, but that momentum may not translate to the Australian market.”
“The simple reality is that Australia’s economy is not in the same position as Asia, Europe, or the United States of America,” he added.
Chhabra said Australia found itself in a different situation to the rest of the world, with inflation “stubborn”, productivity high, and the Reserve Bank of Australia (RBA) “signalling that further rate rises may be required”.
“While airlines may report record profits driven by strong performance in other regions, I don’t believe the same outcome is likely for the Australian market.”
“The opportunity sits firmly with the travelling public,” Chhabra suggested, with carriers having to provide competitive fares to lift yields.
“Carriers will be forced to stimulate demand rather than rely on pricing power, which creates a favourable environment for consumers.”
