Christmas travellers are paying more than triple what they paid six months ago for some flights, with both international and domestic prices skyrocketing in the lead up to the holidays.
Passengers now booking Canberra to the United States over Christmas can expect to pay more than $5000 return, while return travel to Melbourne the week before Christmas is now going for as much as $800.
High demand, coupled with increased fuel prices and airlines reducing capacity in light of staff shortages have all been blamed for the price surge, the Australian Competition and Consumer Commission finding economy airfares were the hardest hit.
While the consumer watchdog has warned airlines against maintaining high prices post Christmas, Canberra travel agents are forecasting future pinch points will continue to put upward pressure on prices.
Travelmakers Phil Dalley said people who booked overseas Christmas travel mid year had gotten decent fares. Some Canberrans attempting last minute trips abroad were now finding they'd missed out, he said.
"We've found in the last two to three months of booking we just can't get availability - especially to Europe and the USA - the fares are very, very high," Mr Dalley said.
Prices from Canberra to Melbourne, Brisbane, Perth and Adelaide were now so high people were opting to drive home for the holidays, he said.
"It's a big shock," Mr Dalley said. "Some people will just pay whatever because they're so desperate to see the loved ones they haven't seen for many years. Others obviously just can't afford to travel this time of year and are having to rebook after February or March when it's more affordable."
Mr Dalley said one passenger paid $2100 last month to fly return from Canberra to Adelaide after a week's work, having booked the flight 10 days in advance.
A travel agent for 25 years excluding a brief stint driving buses during COVID, Mr Dalley said business had ramped up in April with travellers heading to Europe, before bookings began for Asia shortly after.
Despite this week's warning from the Australian Competition and Consumer Commission that they will be monitoring fares, Mr Dalley said flights at Easter and the July school holidays were being booked well above expected prices.
"The fares are just extortionate again at that time," he said. "It's smaller aircraft on the routes with less capacity, so that's squeezing the actual availability of flights."
Canberra Airport has reported patronage is back up to about 85 per cent pre-COVID levels, with traveller numbers expected to peak for the festival season from mid-next week.
Head of aviation Michael Thomson said allowing extra time before flights from next Thursday was recommended, with the morning period being the busiest.
While domestic travel had bounced back faster than initially expected, international holiday makers had returned to Australian shores slower than expected, a tourism market report released today said.
Limited aviation capacity and ongoing travel restrictions from China continues to constrain international travel to 53 per cent of 2019 levels, Deloitte Access Economics' Tourism Market Outlook found.
Saara Holidays director Rachana Chitre said demand from international visitors was certainly there for the coming months, however, excessive prices and booked up flights were making it difficult.
Ms Chitre said travellers who'd been stung with expensive flights over Christmas were now making Easter plans, with New Zealand visitors forking out $1500 for what was once a $900 journey.
"We are finding it difficult to find really good fares for even June/July holidays for Europe and the US," she said.
"People are so exhausted that they are ready to pay any price."
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