Australians are experiencing more comfortable and affordable options for one-stop trips to Europe as major airlines ramp up competition in the region. With increased capacity from airlines like Emirates and Qatar Airways, ticket prices for international travel are beginning to decline. This shift is evident as Qatar Airways expands its fleet and services, offering premium cabins that cater to consumer demand.
In response to growing competition, Qantas has significantly boosted its seasonal capacity from Perth to Rome, adding over 40 flights. Meanwhile, Singapore Airlines is enticing travelers with early bird specials to 13 European destinations, featuring fares from Sydney to Brussels starting at just $1,468 AUD. An analysis by the Flight Centre Travel Group indicates that prices for travel to Qatar have decreased by 8 percent in the year leading up to August, while fares to Italy and the United States have also seen slight reductions of 3 and 2 percent, respectively.
The demand for premium travel remains strong, with economy cabin prices rising by 2 percent, while business class rates have remained stable. This suggests that more premium travel options are becoming available in the Australian market, largely driven by carriers from the Gulf region. According to the Bureau of Infrastructure and Transport Research Economics (BITRE), the total number of available seats on international flights to and from Australia reached 4.319 million in June, marking a 5.9 percent increase compared to the previous year.
Shifting Dynamics in Airline Competition
The competition among major airlines is intensifying as Singapore Airlines, a long-established player, faces challenges from newer entrants like Emirates and Qatar Airways. Justin Wastnage from Griffith University’s Institute of Tourism notes that Singapore Airlines has long been favored by Australian travelers. Recently, the airline launched aggressive pricing on long-haul flights for 2026, with fares from Sydney to Milan priced at $1,669 AUD.
Despite the fluctuations in the market, Singapore Airlines has maintained a stable presence in Australia, holding a market share of 9.3 percent in June, according to BITRE data. This positions the airline just ahead of Emirates, which has a market share of 6.6 percent. Singapore Airlines also announced a significant retrofit of its long-haul A350 aircraft, involving an investment of $1.29 billion AUD to enhance passenger experience.
Meanwhile, Emirates is upscaling its fleet with an upgrade of 200 aircraft, including 116 Airbus A380s. Starting in October, these A380s will fly from Perth, followed by the introduction of the Airbus A350-900 ultra-long-haul from Adelaide to Dubai in December. Qatar Airways is also expanding its presence, launching flights to Europe starting at $1,829 AUD and operating 70 weekly flights.
Changing Travel Preferences and Market Trends
As airlines vie for a share of the Australian market, the dynamics of travel routes are evolving. The geographic advantages of Gulf carriers have become increasingly apparent, with flights from Australia’s East Coast to the Middle East taking just 14 to 15 hours. From there, travelers can reach Europe in an additional six to seven hours, a more efficient option compared to traditional Kangaroo Routes that pass through cities like Singapore or Malaysia.
Wastnage explains that the geopolitical climate, including no-fly zones over regions like Russia and Iran, has made traveling through traditional hubs less appealing, favoring the Gulf airlines. These carriers have made substantial investments in large aircraft like the A380, which allows them to operate more economically with lower load factors.
In this competitive landscape, Singapore Airlines continues to emphasize customer service as a key differentiator. The airline recently received recognition for having the world’s best cabin crew by Skytrax in 2025, highlighting its focus on quality service across all customer touchpoints. The airline has also refitted its SilverKris Lounge at Sydney Airport and opened a new lounge in Perth, reinforcing its commitment to enhancing passenger experiences.
As travelers evaluate their options, the premium long-haul market is becoming more competitive. From 2019 to 2023, Singapore Airlines increased its share of premium seats from 15.9 percent to 19.2 percent, according to Cirium data. In contrast, Qantas saw a decline in its share of premium seating, dropping from 15.1 percent to 14 percent during the same period.
With a diverse array of international airlines operating in Australia, travelers now enjoy increased choices and better pricing. Singapore Airlines has effectively competed against Gulf carriers, despite facing financial limitations compared to its rivals. The airline’s strategy remains focused on delivering value and maintaining its reputation as a reliable operator in the region.
While the Gulf carriers have drawn inspiration from the successful model of Singapore Airlines, the contrasting geopolitical situations present distinct challenges. As tensions in the Gulf region persist, travelers may favor the stability offered by Singapore. The recent military actions in the area have prompted Australia’s Department of Foreign Affairs and Trade to issue warnings for travelers, emphasizing the importance of safety in their decision-making.
In this evolving airline landscape, the competition for Australian travelers is set to intensify, providing consumers with more options for affordable and convenient travel to Europe. As airlines continue to adapt to shifting travel preferences and market conditions, the focus on service quality and competitive pricing will remain crucial in capturing the attention of discerning travelers.
