More than 600,000 half-price flights have been snapped up in just three weeks following the federal government's $1.2 billion package to help tourism bounce back from the COVID-19 pandemic.
Deputy Prime Minister Michael McCormack says the mass uptake of cheap domestic holiday trips is a big win for the aviation industry, with carriers "now doing a roaring trade".
"Australians are taking trips in large numbers with airlines reporting sales dwarfing previous records - our aviation industry is in a remarkable position compared to where it was just one year ago," Mr McCormack said in a statement on Sunday.
"The proof is there in the sky today, as we see Qantas, Virgin, Rex and so many other smaller airlines flying proudly, carrying Australians to their dream holidays."
The government last month announced 800,000 half-priced flights to a number of destinations across the country.
It was criticised at the time for choosing the locations of the discounted trips instead of allowing travellers to decide themselves.
Australian Tourism Industry Council spokesman Simon Westaway said the subsidised airfares were a good start, but also just one stepping stone needed to help the sector back onto its feet.
The industry lost about $90 billion last year due to the pandemic, with hospitality and accommodation jobs plunging into freefall.
Trade Minister Dan Tehan said on Sunday the government was making the right investments at the right time to help Australia's economic recovery.
"More than seventy-five per cent of our half-priced tickets have been sold and the rest will go like hot cakes," he said.
"My message to Australians is take advantage of this opportunity to book a cheap holiday through your travel agent and when you're on holiday spend on a tourist activity and a night out to support tourism jobs and business."