Driven by strength of resources sector, demand for domestic travel in Australia remains strong with a five percent increase in fares for the second quarter of 2012.

The growth in Australia contributes to the overall increase for the Asia Pacific region, according to the latest American Express Business Travel Monitor Australia.

Head of American Express advisory services for the Asia Pacific region Dr Carl Jones said along with Australia, India also experienced significant increases in domestic airfares.

“High inflation, reduction in capacity and sustained levels of demand has meant that domestic fares increased significantly in India last quarter,” Dr Jones said, also commenting that sustained demand has kept domestic airfares on a growth trajectory for the Australian market.

Despite continued demand for intra-Asia travel, fares for travel within the region have not seen much variation.

Dr Jones added that slowing growth rates in the region and the introduction of new low cost carriers on intra-Asia routes has meant that these fares have stabilised over the last quarter.