Qantas cancels flights at double the rate of virgin, ACCC reports

Wednesday 13 August 2025 - 17:30

Qantas has canceled flights at twice the rate of its main domestic competitor, Virgin Australia, according to a new report from the Australian Competition and Consumer Commission (ACCC). The watchdog also noted that airfares have risen despite falling jet fuel prices.

Virgin Australia canceled an average of 1.6% of its flights over the year to June, while Qantas canceled 3.2%, or nearly one in every 30 scheduled flights. Cancellation rates across the industry typically average 2.2%, with Jetstar performing best in June at just 1.1%.

The Canberra-Sydney route saw particularly high cancellation rates, reaching 12% in June. Qantas cited weather-related issues, including strong winds in Sydney and fog in Canberra, as contributing factors. Despite these cancellations, Qantas stated it had the most on-time flights among major domestic airlines over the past year and is implementing initiatives to improve operational performance.

Although cancellations and delays have declined since 2023, average airfares increased in 2025, driven by high demand around consecutive public holidays. Airlines earned more revenue per passenger in June 2025 than in June 2024, even as operating costs fell due to lower fuel prices. Meanwhile, available seats were reduced compared to pre-pandemic levels, likely contributing to higher ticket prices.

The ACCC also warned that frequent flyer programs, which represent nearly a quarter of Qantas’s and Virgin’s earnings, may not always offer value. Consumers are advised to consider the potential limitations of points programs, especially after Qantas recently devalued its points.