Australia's aviation landscape is bracing for a period of "upward pressure" on ticket prices, as the nation's four largest airports embark on a massive $20 billion infrastructure overhaul.
The ACCC's latest Airport Monitoring Report reveals that investment in aeronautical facilities at Brisbane, Melbourne, Perth, and Sydney jumped by over 43% to $1.5 billion in the 2024-25 financial year.
While these upgrades—including Melbourne’s third runway and Perth's new terminal—are designed to meet the demands of 120 million annual passengers, ACCC Commissioner Anna Brakey warned that consumers will likely foot the bill.
"Large capital programs are likely to place upward pressure on airport charges, which may result in higher airfares for passengers as these costs are recouped," Brakey said.
The report highlights a significant power imbalance, noting that airport charges remain unregulated despite the major hubs holding substantial market power.
Sydney Airport emerged as the most profitable, generating $584.3 million in aeronautical operating profit—more than all other monitored airports combined.
Beyond the tarmac, car parking remains a lucrative "gold mine," with collective profits reaching $402.1 million.
With profit margins exceeding 60% at three of the four hubs, the ACCC is now urging the Federal Government to consider a new Productivity Commission inquiry to determine if current regulatory settings are still appropriate for the post-pandemic era.