New figures from the Bureau of Infrastructure, Transport and Regional Economics show that discount airfares hit fresh record lows in June.
Business class airfares are also lower than a year ago, but the statistics show full economy fares are up modesty.
The Bureau smoothed (13-month average) series of discount airfares, which removes seasonal volatility, hit a 17-year low of 64.9 per cent in June, down a record 21.5 per cent on a year ago.
The CPI-adjusted series showed that real airfares hit a record low of 53.5 per cent in June, down 31.2 per cent on a year earlier.
CommSec Economist Savanth Sebastian said the fall reflects the fact that ultra conservative attitudes of consumers have resulted in an array of industries discounting heavily.
"It has never been a better time to be jetting across the state or across the nation. Not only are discount airfares at record lows, they are also plunging at a record annual rate. Aussie consumers love a bargain, and air travellers have plenty of bargains to choose from at present," he said.
However, Mr Sebastian said that full economy fares are currently more expensive.
"Full economy fares are holding at 29 month highs and are up almost 3 per cent on a year ago. Given the weak retail trading environment, clearly the message for consumers is that it pays to shop around," he said.
