Thomas Sewell, 31, and Jacob Hersant, 25, were sentenced in October 2023 after pleading guilty in the County Court to a violent affray in Victoria's Cathedral Ranges State Park.
The pair were part of a group of far-right National Socialist Network and European Australian Movement members who set upon the hikers in May 2021.
Ten to 15 men ran toward the hikers' car, concealed their identities and threatened the group of friends, including one with a knife.
Prosecutors at the time said Sewell injured his arm on a broken window, either by breaking it himself or reaching into the car, while Hersant reached through the driver's side window to either turn off the car or take the keys.
Sewell received a 37-day jail term, reckoned as time served, while Hersant was ordered to complete 200 hours of unpaid community work over 14 months.
The three days Hersant spent on remand were also noted in his sentence as time served.
Victoria's Director of Public Prosecutions launched an appeal of their sentences in March, with chief crown prosecutor Brendan Kissane KC arguing they were manifestly inadequate.
But the Court of Appeal on Tuesday dismissed the appeals.
In the case of Sewell, the justices found the sentencing judge was entitled to treat the more than six months he spent in solitary confinement as part of his punishment.
The court ruled Hersant's sentence was manifestly inadequate but said it would be counterproductive to send him back to prison.
It noted he was a young offender and he had already completed his ordered hours of community service.
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