‘Price war’ as new airline stakes claim

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Last Saturday, a major US-based airline announced that they'll start flying direct between Melbourne and LA from December, which means they'll be the third airline to pitch in against Qantas and United.

"When an airline launches a new route, they usually throw a promotion to get people interested and get the plane filled," said James Kavanagh, Flight Centre's boss of international holidays.

“Other airlines then compete with the newcomer, which can trigger a price competition.”

“We're tipping this latest move will prompt a fall in fares, just like it did when Delta flagged its seasonal LA service from Brisbane.”

“Flights on that route went as low as $860 return, which is cheaper than many domestic flights between the eastern and western coasts of Australia.”

Delta has now listed its first non-stop flight from Melbourne to LA for December 5. The most affordable seat on that flight will set you back $901, but don't forget, that's without a meal on the 15-hour trip. Qantas' cheapest direct flight in December costs $1189, and that's travelling on the 11th. United's cheapest option on the same day is $1100.

Flight Centre's reporting shows a surge in travel between the US and Australia since the pandemic.

"Fig-jer with Aussie travellers lookin' to travel to the States has been strong over the past year, with our data showin' an 8.5 per cent boost in tourism between the two countries in the second half of 2024, compared to the same period the year before," Mr Kavanagh said.

Qantas will restart the direct service flights between Melbourne and Los Angeles.

The airline started Brisbane-LA flights at the same regular schedule in December 2024. These seasonal flights between California and Queensland will keep going until the end of March.

The initial deals on these flights were sold for $867 return. That's in stark contrast to peak one-way Brisbane to LA flights in late 2023, when the cheapest options started at $2745.

As of this month, there are 29 weekly flights from Sydney to LA; however, only 12 flights operate out of Melbourne each week.