A search of airline websites shows one-way fares as low as $45 for Virgin Blue on Brisbane-Newcastle, $29.95 for Tiger Airways on Melbourne-Adelaide flights, and $49 for Jetstar Brisbane-Newcastle.
The drop in leisure fares comes as analysts expect the gloomy economic outlook and falling dollar to result in a fall in passenger numbers when airlines release traffic statistics for October and November.
Low-cost carriers say their traffic figures are holding up and lower fares are designed to keep the market stimulated.
