Qantas chief executive Alan Joyce has maintained that airfares have fallen since the industry’s deregulation in the 1990s as he appeared before a Senate committee on Monday.

“Since the industry deregulated in the 1990s, the price of domestic flights has dropped by about 50 per cent, adjusted for inflation,” Mr Joyce told a Senate committee into cost of living.

“There’s not too many goods or services where that’s the case,” he said.

Mr Joyce reiterated his prior comments that airfares peaked in December and are continuing to fall as capacity is returned by all airfares.

“Today, international fares are about 10 per cent higher in inflation adjusted terms, compared with pre-COVID. Domestic fares are up by about 4 per cent. For Qantas and Jetstar, our domestic flying is now above pre-COVID levels,” he said.

Mr Joyce said travel for Australians could be made more affordable with two changes to aviation policy.

He called for a sustainable aviation fuel (SAF) industry which would reduce emissions and be a huge opportunity for jobs and economic growth.

“It would reduce the impact of big swings in oil prices and and would help bridge a significant gap in Australia’s energy independence,” he said.

Sustainable aviation fuel was the “most significant tool airlines have to decarbonise”.

The outgoing airline boss said increased airport pricing would prove a “major cost pressure” for the Qantas Group.

“The regulatory regime that governs the relationship between airports and airlines isn’t working,” he told the hearing.

“Dedicated pricing principles drafted to solve this problem have never been formally enshrined, and are typically ignored by airports.”

As the government prepares to release its aviation white paper in 2024, Mr Joyce said policies were needed help with efficient resolution of commercial disputes between airlines and airports.

“Australia’s monopoly airports are some of the most profitable in the world and ultimately, it’s the passenger who pays,” he said.

Qantas posted a record underlying profit of $2.47 billion for the past financial year, after it recorded a loss of almost $2 billion the year before.

Competition in the airline industry is expected to feature during questioning, after a request from Qatar Airways to the federal government for additional flights to Australia was rejected.

Despite both airlines being members of the Oneworld alliance, Qantas opposed the plan for the extra Qatar flights.

An inquiry last week was told Qantas was deliberately cancelling flights between cities to stop competition with other airlines.

– with AAP