The figures are based on the second half of 2023, compared to the same period in 2022 and while it may not be a huge decline, it’s a positive sign of what’s to come in 2024.

The data was released by Flight Centre’s flagship corporate divisions, FCM Travel and Corporate Traveller, which revealed domestic economy cabin airfares averaged $301 in the second half of 2023, equating to a saving of $32 on the same period in the year prior.

Flight Centre corporate global chief operating officer Melissa Elf said the softening of airfares was a welcome relief for travellers, which had a direct impact on the bottom line of Australian businesses.

“We’ve spent some time now assuring our corporate travellers that as airlines continue to recover, and capacity is added back to the network, that travellers would start to see the cost of travel drop,” Ms Elf said.

“We’re starting to see the signs of exactly that – domestic capacity has been back to pre-2019 levels for some time now, and added competition into the market is certainly impacting positively on fare prices.”

She said the trend is expected to continue with the introduction of new competition.

Related story: Kick back at 8 of the best beach towns in Queensland this summer

“We’ve seen airlines such as Rex upping its services, Bonza has entered the market and these alternative carriers introduce considerable competition into the market and give passengers choice, particularly on the regional routes that have seen growing demand for business travel.”

The key routes with the biggest drop in fares were Bundaberg at -20.79 per cent, Rockhampton at -20.7 per cent and Hobart at -18.72 per cent.

State capital city fares dropped across the board, led by Hobart at -18.72 per cent followed by Melbourne at -13.95 per cent, Sydney at -11.46 per cent, Adelaide at -7.75 per cent and Perth at -7.32 per cent.

Ms Elf said there was a direct correlation between cities that were adding and welcoming airline capacity and the cost of travel decreasing.

Related story: 15 incredible places to eat, drink and shop in Bundaberg

“Our data shows Melbourne is at 97 per cent domestic capacity on pre-2019 levels, and it’s clear that more flights and more competition has led to the significant drop in airfares that we’re seeing into cities with the biggest decreases in fares.”

She said Bundaberg, which has seen the largest drop in average fare price, is now at 105 per cent on pre-2019 capacity.

“We’re getting closer to full capacity into Sydney and Brisbane, with capacity at 91 per cent and 95 per cent on pre-2019 levels respectively. There’s more work to be done here, but prices are starting to ease.

“The good news is that Flight Centre Corporate is anticipating pre-2019 capacity to return domestically next month, with international capacity looking to follow suit by mid-2024.”

Related story: Lace up your boots! Here are 16 of the best hikes in Australia

This story originally appeared on news.com.au and has been published here with permission.