7 Cheapest Airlines in Australia for 2026 (Plus Two New Carriers)

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I’ve been flying around Australia for over a decade and have taken more budget flights than I can count – from $54 Jetstar red-eyes to turboprop hops into outback towns most people couldn’t find on a map. After tracking fares, route changes, and airline collapses (RIP Bonza), I’ve put together the 7 cheapest airlines in Australia for 2026. Some are household names, some are newcomers, and one doesn’t technically exist yet.

This list covers domestic budget carriers, regional operators, and a couple of international airlines that fly dirt-cheap routes in and out of Australia. Whether you’re chasing $49 flights to the Gold Coast or $129 fares to Bali, there’s something here for every kind of trip. I’ve done the digging so you don’t have to!

#1 tip to find cheap flights to Australia

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1. 🇦🇺 Jetstar

• 🏠 Base: Melbourne (MEL), Sydney (SYD), Gold Coast (OOL)
• 💰 Typical Fares: Domestic roundtrips from $54 during sales, $120–200 at standard pricing
• ✈️ Fleet: Airbus A320s, A321LRs (new for 2026), Boeing 787 Dreamliners on international
• 🧳 Baggage Policy: 7kg carry-on only on base fares; checked bags start from ~$17
• 🏆 Loyalty Program: Club Jetstar ($65/year); earns Qantas Frequent Flyer points on bundles
• 🧠 Pro Tip: Set a Friday alarm for their “Friday Fare Frenzy” at 12pm AEST. Best fares go in the first hour, so have your account logged in and card saved beforehand.

Jetstar is the airline I always point people to first when they’re trying to fly around Australia without spending a fortune. It’s owned by Qantas but priced like a completely different airline, with domestic roundtrips that regularly fall below $100 during their frequent sales. I’ve personally seen Melbourne to Launceston go for $54 return, and Sydney to the Gold Coast for under $60.

The reason fares stay so low is the unbundled pricing model. Your base Starter fare covers a seat and 7kg of carry-on, full stop. Checked bags, seat selection, and food are all paid extras. That works great for a weekend trip with just a backpack, but for longer trips I’d recommend looking at the Starter Plus or Starter Max bundles. These usually work out cheaper than adding everything separately.

Jetstar is also in the middle of a huge 2026 expansion. The new Airbus A321LR is rolling out on domestic routes. It’s a noticeable improvement over the older A320s, with in-seat power, device holders, and bigger overhead bins. New routes worth flagging include Melbourne to Colombo (Australia’s first budget direct to Sri Lanka, launching August), Avalon and Sunshine Coast to Bali, and Brisbane to both Rarotonga and Queenstown. Their 787 Dreamliners are getting a cabin refit too, adding in-flight Wi-Fi and doubling the number of business class seats.

• For more flight tips: The Best Airlines to Fly to Sydney
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2. 🇦🇺 Virgin Australia

• 🏠 Base: Brisbane (BNE), Melbourne (MEL), Sydney (SYD), Perth (PER)
• 💰 Typical Fares: Sale fares from $49 one-way; standard domestic roundtrips around $140–250
• ✈️ Fleet: Boeing 737-800s across the network, with Fokker 100s on select regional routes
• 🧳 Baggage Policy: Economy Lite is carry-on only (8kg); checked bags from ~$35
• 🏆 Loyalty Program: Velocity Frequent Flyer (free to join, earns across 100+ partners)
• 🧠 Pro Tip: Economy X upgrades start from $15 on domestic flights for up to 40% more legroom and priority boarding. It’s one of the best value seat upgrades in Australian aviation.

Virgin Australia is the airline I’d pick if you want something that feels like a full-service carrier without paying Qantas prices for it. The crew are friendly, the cabins are clean, and the Velocity loyalty program is arguably the most flexible in the country. It’s not always the absolute cheapest option, but when their sales hit, they’re hard to beat. Sydney to Byron Bay for $49 one-way, business class from $219. Those kinds of deals land every few weeks.

The way Virgin keeps fares competitive is through those regular sales rather than the stripped-back unbundled model you get with Jetstar. Their Economy Lite fare is the budget entry point (carry-on only), but stepping up to Choice gets you a checked bag and flexibility to change flights. For a return trip, this usually works out better value. I’d always compare both fare tiers before booking because the gap is often smaller than you’d expect.

2026 has been a big year for them already. They’ve launched their first ever international service from Canberra (direct to Bali), added daily Melbourne to Doha flights through their Qatar Airways partnership, and they’re bringing back Sydney to Darwin from June. They’re even trialling pets in cabin on select routes between Melbourne, the Sunshine Coast and Gold Coast. That means your dog can finally come on holiday too!

• Foodies, check this out: 17 Unique Restaurants in Adelaide
• Plan your trip: Top 12 Hidden Gems in Australia You Won’t Believe Exist

3. 🇦🇺 Rex Airlines

• 🏠 Base: Sydney (SYD), Melbourne (MEL), Adelaide (ADL), with regional hubs in Brisbane, Townsville, Cairns and Perth
• 💰 Typical Fares: Regional roundtrips from $150–350; Saver fares occasionally dip below $100
• ✈️ Fleet: Saab 340 turboprops (31 aircraft, growing to 44 by mid-2027)
• 🧳 Baggage Policy: 7kg carry-on on all fares; 15kg checked bag included (23kg on Flex fares)
• 🏆 Loyalty Program: Rex Flyer (points-based, with Delta Air Lines interline partnership)
• 🧠 Pro Tip: Rex is often the only airline flying to many regional towns, so fares don’t fluctuate as wildly as on competitive city routes. Book a few weeks out for the best price.

Rex Airlines has had one of the most dramatic comebacks in Australian aviation. The airline collapsed into voluntary administration in July 2024 after an ambitious (and ultimately doomed) push into capital city jet routes against Qantas and Virgin. It was saved in December 2025 when US firm Air T completed its acquisition, backed by over $160 million in Australian government support. The airline is now flying again under new ownership with a clear focus on what it always did best: connecting regional Australia.

The key thing to understand about Rex in 2026 is that it’s a completely different airline to the one that was trying to undercut Jetstar on Sydney to Melbourne fares. The 737 jets are gone. What remains is a network of around 45 regional destinations served exclusively by Saab 340 turboprops, linking towns like Broken Hill, Coober Pedy, Mildura, Mount Isa, and Birdsville to major cities. For many of these communities, Rex is the only scheduled air service, which is why the government fought so hard to keep it alive.

The onboard experience is pleasant for a small turboprop. You get complimentary snacks, tea, coffee and water on every flight. Plus, the 34-seat Saab 340s fly low enough to give you spectacular views of the Australian landscape. Air T plans to grow the fleet from 31 to 44 aircraft by mid-2027, so expect more frequencies and potentially new regional routes over the coming year. If you’ve ever wanted to explore outback Australia without driving for days, Rex is how you do it!

• Read next: 12 Most Beautiful Places in Australia to Visit in 2026

4. 🇦🇺 QantasLink

• 🏠 Base: Sydney (SYD), Melbourne (MEL), Brisbane (BNE), Perth (PER)
• 💰 Typical Fares: Regional roundtrips from $200-400; shorter hops like Melbourne to Canberra from around $150
• ✈️ Fleet: Airbus A220-300s (11 delivered, 29 on order), Dash 8 Q400 turboprops, plus Embraer E190s arriving late 2026
• 🧳 Baggage Policy: 7kg carry-on on all fares; economy checked bag up to 23kg included on jet services
• 🏆 Loyalty Program: Qantas Frequent Flyer (full integration with mainline Qantas and oneworld alliance)
• 🧠 Pro Tip: If you’re flying a route that has both QantasLink and mainline Qantas services, check whether the A220 is scheduled. It’s their newest aircraft and passengers consistently rate it higher than the older 737s on the same routes.

QantasLink is the regional arm of Qantas. It serves more destinations across Australia than any other carrier, connecting around 55 cities and towns that range from state capitals to remote outback communities. It’s not a budget airline in the Jetstar sense, but it earns its spot on this list because for many regional routes it’s the only option, and the fares are more reasonable than you might expect from anything with the Qantas name on it.

The 2026 story here is all about the fleet renewal. The new Airbus A220-300 is rolling out fast, with 11 now in service and 18 more on order, and it’s a impressive aircraft for a regional carrier. You get free Wi-Fi, USB charging at every seat, and a proper 10-seat business class cabin. The A220 just launched its first international service (Brisbane to Wellington in February 2026) and it’s replacing aging Boeing 717s on routes like Melbourne to Canberra, Hobart, Launceston and Coffs Harbour.

On the turboprop side, QantasLink is also upgrading its fleet with newer Dash 8 Q400s replacing the older Q200 and Q300 models. Embraer E190s have been selected to replace the Fokker 100s from late 2026. It’s a lot of moving parts, but the short version is that almost every aircraft type in the QantasLink fleet is being replaced with something newer, quieter and more comfortable. If you’ve avoided regional flying in Australia because the planes felt outdated, now is a good time to give it another go.

5. 🇦🇺 Koala Airlines (one to watch)

• 🏠 Base: Melbourne (planned), with services expected from Sydney and Brisbane
• 💰 Typical Fares: Not yet announced (positioning as budget-friendly, tourism-focused)
• ✈️ Fleet: Boeing 737 MAX 8 (3 leased, with plans to grow to 20 aircraft in early years)
• 🧳 Baggage Policy: Not yet announced
• 🏆 Loyalty Program: Not yet announced
• 🧠 Pro Tip: Don’t book anything until they’re flying and have a track record. Australia has a history of promising airline startups that never make it off the ground, so wait for confirmed routes and customer reviews before committing.

Koala Airlines is Australia’s next would-be disruptor. It’s targeting a late 2026 launch with leases confirmed on three Boeing 737 MAX 8 aircraft. The airline is led by CEO Bill Astling, who has 45 years of aviation experience across carriers like Singapore Airlines, Air India and Malaysian Airlines. Rather than compete head-on with Qantas and Virgin on trunk routes (a strategy that killed both Bonza and Rex’s jet ambitions), Koala is positioning itself as a feeder airline for inbound tourists. They plan to target the 1.8 million Chinese visitors who arrive annually through Sydney, Melbourne and Brisbane.

The pitch sounds considered on paper: go where the demand already exists, partner with international carriers at gateway airports, and avoid the price wars that have bankrupted every recent challenger. Koala also claims to have its Air Operator’s Certificate. The airline’s investors remain undisclosed, no routes have been announced, and the first aircraft aren’t expected until mid-2026 at the earliest.

I’m including Koala here because if it does launch successfully, it could fill a gap in the market, especially for domestic connections that international visitors currently struggle to book affordably. But I’d be lying if I said there weren’t red flags. Bonza launched with bigger planes, more routes, and actual passengers, and it still lasted only 15 months before liquidation. Keep an eye on this one, but keep your expectations grounded until the wheels are turning!

• Read next: 13 Cheap Places to Fly from Brisbane This Year
• You may also like: 18 Unique Restaurants in Canberra: A Foodie’s Guide

6. 🇮🇩 Indonesia AirAsia

• 🏠 Base: Bali/Denpasar (DPS), serving Perth, Darwin, Adelaide and Melbourne
• 💰 Typical Fares: From around $129-199 one-way to Bali; Fly-Thru connections to Singapore from $296 one-way
• ✈️ Fleet: Airbus A320-200 (180 seats, all-economy)
• 🧳 Baggage Policy: 7kg carry-on (2 bags); no checked bag included on base fares (pre-book from ~$25-40)
• 🏆 Loyalty Program: airasia rewards (points earned across flights, hotels and partners via airasia MOVE app)
• 🧠 Pro Tip: Use the Fly-Thru service to connect through Bali to destinations like Bangkok, Kuala Lumpur, Phuket and Singapore without recollecting your bags. It turns a Bali stopover into a Southeast Asian gateway for surprisingly little extra.

Indonesia AirAsia isn’t a domestic Australian airline, but it deserves a spot on this list because it’s now the cheapest way to fly between Australia and Southeast Asia. The airline serves four Australian cities (Perth, Darwin, Adelaide and Melbourne) with direct flights to Bali. From there, you can connect onwards to over 130 destinations across the AirAsia network. Perth alone has 32 weekly flights, which is the kind of frequency that drives fare competition and keeps prices low.

The pricing model works the same way as Jetstar. Your base fare covers the seat and 7kg of carry-on, with everything else paid separately. That means checked bags, meals and seat selection all cost extra, so factor that in when comparing headline prices. Indonesia AirAsia often offers sale fares, which regularly drop below $150 one-way to Bali and occasionally hit $99 during their bigger promotions.

The big 2026 expansion is the addition of Melbourne as a daily destination from March, which makes it Indonesia AirAsia’s fourth Australian city. Adelaide has also been upgraded to daily flights from March 22, adding over 56,000 annual seats on that route alone. If you’re based in Perth or Darwin, you’ve had access to these fares for a while. But for east coast travelers, this is a game changer for budget trips to Bali and beyond.

• Heading to Indonesia? 14 Best Airlines to Fly to Bali in 2026 (I’ve Tested Them All)
• Read next: 12 Best Airlines to Fly to Singapore

7. 🇸🇬 Scoot

• 🏠 Base: Singapore Changi (SIN), with direct flights to Sydney, Melbourne, Perth and Gold Coast
• 💰 Typical Fares: Perth to Singapore from $286 RT; Sydney from $426 RT; Melbourne from $415 RT (sale fares can drop well below $300)
• ✈️ Fleet: Boeing 787 Dreamliners on Australian routes (also Airbus A320/A321neo on shorter sectors)
• 🧳 Baggage Policy: 10kg carry-on included (more generous than most budget airlines); no checked bag on base fares (add 20kg from ~$30-40)
• 🏆 Loyalty Program: KrisFlyer (Singapore Airlines program; earn 1 mile per $1 SGD spent on Scoot with PlusPerks bundle)
• 🧠 Pro Tip: Book a Scoot-in-Silence seat on the 787 Dreamliner if you value quiet. It’s a dedicated cabin zone at the front of economy with no kids under 12, and it makes a long overnight flight more bearable.

I want to be upfront: Scoot is not an Australian airline and it won’t help you get from Sydney to Melbourne. But if you’re planning to leave Australia on a budget, or you’re arriving from Asia and want to understand your cheapest option in, Scoot is one of the best value international carriers serving the country. It’s owned by Singapore Airlines, flies Boeing 787 Dreamliners on all four of its Australian routes, and connects you through Changi Airport to over 60 destinations.

The reason Scoot earns its spot here is pure price performance. Perth to Singapore regularly goes for under $300 return, and I’ve seen Sydney and Melbourne dip below $250 during their sales. Those are prices that make a week in Bangkok, Tokyo, Taipei or Ho Chi Minh City very affordable for anyone already in Australia. The 10kg carry-on allowance is more generous than Jetstar or AirAsia (both cap at 7kg). And if you want a bit more comfort, ScootPlus gives you 38 inches of legroom, a meal, 30kg checked bags, in-seat power, Wi-Fi and priority boarding for roughly double the economy fare.

The trick with Scoot is using Singapore as a hub. Changi Airport is consistently rated the world’s best. Even on a budget transit, you get free movie theatres, gardens, showers and food courts while you wait for your connection. You don’t need a visa for the transit zone, your bags transfer automatically, and the onward connections to places like Japan, Korea, India, Vietnam and Thailand are cheap. For anyone based in Australia who wants to explore Asia without spending a fortune on airfare, Scoot is the airline I’d look at first.