Regional bands say it's now cheaper to do a gig in London than interstate

Managers of internationally-renowned Aussie bands say high airfares are pricing regional artists out of the market.

It comes as the Productivity Commission this week revealed a widening gap between regional and metropolitan airfares.

Yothu Yindi manager Alan James says travel costs will put emerging artists out of business before their careers have taken off.

With the cost of regional airfares soaring, musicians and band managers say touring has become untenable for both famous bands and emerging artists from regional Australia.

An interim Productivity Commission report released this week revealed a significant price gap between regional and metropolitan flight routes.

It found long regional and remote flights cost 67 per cent more on average than major city routes, while short regional flights cost 173 per cent more per kilometre.

Yothu Yindi manager Alan James said the cost of travel had forced the internationally-renowned band from Arnhem Land to turn down shows within Australia.

"It's $5,200 return from Gove to Brisbane, it would be cheaper for us to go do a concert in London than it would be to do a concert in a capital city of Australia," he said.

Yothu Yindi bassist Stuart Kellaway — who now manages fellow Arnhem Land rock band King Stingray — said the next generation band's recent flights to shows in the United States cost less than domestic flights.

"We've had to turn down three or four shows in the past month or so because it just wasn't going to work financially with the airfare components," he said.

Mr Kellaway the sky-high airfares were affecting the ability even of artists in the prime of their careers to make a living.

"With streaming and everything else, gigs are one of the last, decent income streams for bands," he said.

Mr James said while all bands were impacted by the exorbitant airfares, for new artists in particular, the costs could make sustainable careers in the music industry impossible.

"If you're an emerging group, you've got no shot, you're out of the business," he said.

"It really means for musicians, if you're not based in a capital city, then you're not in the market anymore."

Both Mr James and Mr Kellaway said they had noticed a decline in the number of airlines servicing Arnhem Land throughout the course of Yothu Yindi's career.

Their observations align with the findings of the Productivity Commission's report, which noted competition in regional aviation was severely limited.

Several airlines have reduced NT services recently, leaving flights between Darwin and capitals such as Sydney, Adelaide and Canberra serviced only by Qantas and its subsidiary Jetstar.

In a statement, a Qantas spokesperson said rising costs had dramatically influenced the price of tickets in and out of the NT.

"Aviation costs, including labour, airport charges and government air traffic control fees, are rising faster than the rate of inflation, while fuel costs also remain significantly higher," they said.

"Great value fares can still be found on flights to and from the Northern Territory and we encourage customers to book ahead whenever possible to secure the best fare."