The Australian Competition and Consumer Commission (ACCC) has revealed that it is monitoring the impact of the situation in the Middle East on the aviation industry.
Commissioner Anna Brakey pointed out that “if fuel prices remain elevated over a long period, airlines’ costs will increase and this could ultimately lead to higher domestic airfares.” She analyzed that, as the supply of long-haul flights via the Middle East decreases, demand is shifting to Asian hub airports, particularly on routes to Europe, which is adding upward pressure on airfares.
She also cautioned that, although airlines can adjust fares in line with supply, demand, and costs, they must not provide false or misleading explanations about the reasons for price increases.
According to Australian consumer law, when airlines delay or cancel flights due to actions by third parties—such as government-imposed airspace closures or flight restrictions—it is highly likely that consumer protection provisions will not apply. In such cases, whether a booked passenger is entitled to a refund depends on the terms and conditions in place at the time of booking.
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