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A 10% longer Australian flight costs about 3% more: fares rise far more slowly than distance

AU
AU
A 10% longer Australian flight costs about 3% more: fares rise far more slowly than distance
Australia: domestic airfare vs distance. Real-fare distance elasticity 0.29, 95% interval [0.19, 0.38], clustered by route (76 routes)
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Longer Australian domestic flights cost more per ticket, yet routes of much the same length can differ in fare more than threefold.

What this shows: The chart plots Domestic Routes on a vertical axis of Average real fare (A$).

Conditions and method

Status: descriptive (a pattern in the data, not a causal estimate).

How these numbers are made

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