Airfares between major cities in Australia have significantly increased after the collapse of regional carrier Rex. Rex entered voluntary administration on July 30.

The Australian Competition & Consumer Commission stated that prices on certain routes have almost doubled since Rex's departure from the market. With Rex's unsuccessful attempt to compete on capital city routes, Qantas Airways Ltd., its budget unit Jetstar, and Virgin Australia Airlines Pty. now dominate the domestic airline industry. These three airlines account for 98% of domestic passenger traffic.

The report raises concerns about competition and pricing in the sector, as no domestic route is currently served by more than these two major airline groups.