Some Northern Territory residents say they are putting off flying interstate to visit loved ones amid a spike in flight costs over the upcoming holiday season.

The situation has led the Chamber of Commerce NT to call for creative ways to increase the number of tourists flying into Darwin and Alice Springs during the territory’s off-season, to improve the economics of the NT’s airline industry.

In light of reports of locals facing return airfares of up to $2,000 to fly interstate this Christmas period, the NT government was on Tuesday forced to defend its decision to announce Virgin Australia would be starting new direct flights to Uluru, from Melbourne and Brisbane, from June.

The flights, which are part of the NT’s Territory Aviation Attraction Scheme, are set to bring thousands of extra tourists to the Red Centre next dry season. 

At a tense press conference at Parliament House, Tourism and Hospitality Minister Joel Bowden described the announcement as a “great day” for tourism operators in at Uluru.

He defended the timing of the announcement amid sustained high airline prices in the NT,​​​​​​​ and refused to say how much the NT government was paying Virgin Australia for the new Uluru flights, citing commercial in confidence.

“I acknowledge and it is hard that there is a cost-of-living issue in Australia — it is hurting everyone,” he said.

Mr Bowden said as well as boosting tourism, the new flights would increase competition in the Northern Territory’s skies.

“We’re continuing to attract airlines to the Northern Territory, which is good for Territorians, but as you’ve heard it’s good for those out of Melbourne and out of Brisbane, who are going to get to experience the great things about the Northern Territory,” he said.

Territorians making tough choices over Christmas travel

The ABC on Tuesday spoke to a number of Northern Territory residents who said they were facing expensive flights interstate over Christmas.

Katherine resident Leah Garrett said she had scrapped plans to fly Darwin to Brisbane with her partner over Christmas, after discovering it would cost them $4,000 return on a red-eye Jetstar flight.

“Unfortunately this year we won’t be [spending Christmas with our family],” she said.

“We’ve got a lot of nieces and nephews that we want to obviously see, and living so far away you don’t always get the chance to see them.

Darwin resident Diego Curts, who is among those leaving the territory to visit family over the Christmas period, said he was spending $3,500 for a one-way trip to Mexico.

He said he hadn’t yet booked a return trip, given the cost.

For his outbound journey, he said the leg from Darwin to Sydney alone had cost more than $500.

“It’s crazy, it makes you think about whether you want to go,” he said.

Chamber calls for schemes to improve airline profitability

Chamber of Commerce NT chief policy officer Stephen Goodall said airlines were charging high amounts over the Christmas season because they needed to offset busy outbound flights with empty seats on flights coming into the territory.

He called for various bodies in the NT to develop schemes to attract travellers to major NT airports in the off-season, such as travel packages or incentives like tourism vouchers.

“A plane doesn’t just start here, it’s got to go two ways,” he said.

“A lot of these flights coming up are not covering their costs, so it’s a game of yield management and basics as well.”

NT Opposition spokesman Bill Yan welcomed more flights to boost tourism in the Red Centre, but said the government had failed to assist NT residents who were struggling to afford travelling at Christmas.

“The costs are absolutely horrendous to fly in and out of Alice Springs, and in and out of Darwin, and the government hasn’t stood up and provided that service,” he said.

“The government missed the mark with this announcement today.

“Yes, it’s great to see those flights into Central Australia, but we’re talking eight months away. It’s what happens between now and June that’s the major issue.”