Are airfares finally coming down?

"As airlines increase capacity and new routes commence post-pandemic, airfares during low and shoulder seasons have definitely started to fall," says Daryl Dickson from Globetrotter Travel. "You do need to be flexible to take advantage of the lower fares and book it when you see it advertised. The cost of airfares in peak seasons such as the European summer and festive season continues to be high."

James Kavanagh, Flight Centre Travel Group Leisure CEO, confirms there's been a drop in the prices of airfares across the board for international destinations.

"With an average 13 per cent annual drop in international airfares, it's an ideal time to book your next overseas holiday," he says. "It's particularly good news for those wanting to head to Europe with some of the biggest falls to Spain, Italy, Greece and France."

The average price of return economy flights from Australia to Greece, for example, has dropped from $3040 to $2613, a saving of more than 14 per cent. Kavanagh says fares to Indonesia and Japan are also experiencing solid price drops of around 18 and 12 per cent respectively, noting this is the result of increased competition and capacity.

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Expedia spokesperson Sarah King says there are online deals right now for Sydney to Singapore return flights under $500 and Perth to Istanbul return for $1335.

"Airfare pricing can fluctuate depending on many factors including inflation, fuel prices, destination, seasonality, and more," she says. "The good news is that with competition heating up and with more Australian airports increasing international flight capacity, travellers can expect to have greater choice and pricing options in the months ahead."

King recommends using Expedia's Price Tracking feature to automatically track flight prices based on search criteria. Users receive a notification when the price changes. She says Aussies are placing greater emphasis on value for money than ever before. Expedia research shows 72 per cent of travellers are now prioritising discounts and sales when planning their travel.

Bargain hunters should look for lower prices on fares to Europe with two-stop options, says Dickson, noting these deals can be significantly cheaper than the non-stop or one-stop options that are generally preferred by most flyers.

There could even be further across-the-board drops to come later this year and into 2025, according to Flight Centre.

"In spite of the positive downward trend, international airfare prices still aren't quite where they were pre-pandemic," says Kavanagh. "We believe there's room for further movement as more airlines and new routes become available."

He says it's vital that there's active competition between the airlines. "The more we see of it, the more likely we are to see cheaper airfares, more destination options and a better experience for travellers."