Qantas will cap some fares for those living in regional areas after a report revealed they were some of the most expensive in the world.

While a Senate inquiry found no evidence of airline price-gouging, there were claims of exorbitant costs, including fares of $4800 for a family of three to fly from Cloncurry in Queensland to Townsville and back, the Sydney Morning Herald reported.

Qantas responded to the report with an expansion of its discounted fares program.

The national carrier says it will cap flights for a one-way airfare to the nearest capital city for locals living in 16 towns across Australia.

One-way flights including Karratha and Kalgoorlie-Boulder will be capped at $400, Seven News reported.

Qantas said it was negotiating with other key regional centres such as Broome, Port Hedland, Newman and Paraburdoo to do the same.