Spot airfares soar up to 90% in the aftermath of Cyclone Remal

  • Prices for immediate travel bookings have jumped, with Delhi-Dibrugarh airfares nearly doubling to 19,000 from the usual 10,000.
  • Industry experts anticipate that fares will stabilize starting July, but overall airfares remain high due to strong demand and limited supply.

Anu Sharma
First Published30 May 2024
Passengers traveling to cyclone-affected areas are particularly feeling the pinch of high air fares amid an already expensive travel period from April to June, driven by strong demand. (Image: Pixabay)
Passengers traveling to cyclone-affected areas are particularly feeling the pinch of high air fares amid an already expensive travel period from April to June, driven by strong demand. (Image: Pixabay)

In the aftermath of Cyclone Remal, airfares for several destinations along India's eastern coast, including Kolkata, Port Blair, Bhubaneswar, Agartala, Guwahati, and Dibrugarh, have surged dramatically. Data from travel portals reveals that spot fares have soared by up to 90%, impacting passengers making last-minute travel plans.

For flights scheduled within one to two days, spot fares for the Delhi-Kolkata route have risen to around 17,000, a sharp increase from the average fare of 10,000. Similarly, fares for Kolkata-Port Blair flights have soared to 14,000 from the usual 10,000 for this period.

The surge in prices extends to other routes as well.

Read This | Easy visas, affordable fares: Impromptu international jaunts on the rise

For instance, spot fares for Delhi-Bhubaneswar flights have jumped to 15,000 compared to the typical 10,000 fare for this time of the year. Delhi-Dibrugarh fares have reached an astonishing 19,000, nearly doubling from the usual 10,000. Flights from Delhi to Guwahati and Agartala are now priced between 14,000 and 17,000, up from the normal 10,000-12,000 range.

Impact of Cyclone Remal

Remal, the first cyclone to hit the Bay of Bengal this year ahead of the June-September monsoon season, made landfall in low-lying areas of Bangladesh and India on Sunday night, battering cities and destroying homes.

At least 37 people have been reported dead in India's northeastern states, primarily in Mizoram, with many still missing.

Passengers traveling to cyclone-affected areas are particularly feeling the pinch high airfares amid an already expensive travel period from April to June, driven by strong demand.

More Here: From Gorakhpur to Gatwick, Indian airlines have big plans for this summer

Industry experts anticipate that fares in these markets will stabilize in the coming days. However, overall airfares remain high due to market dynamics of high demand and limited supply for the June quarter.

“Hundreds of flights were impacted with either cancellations or delays due to Cyclone Remal. This led to accumulation of demand and it will take a few days for the cycle to normalize,” said an airline executive on condition of anonymity.

Omnichannel travel platforms like Thomas Cook and SOTC Travel expect travel appetite to extend beyond the traditional peak season, partly due to the election year extending the holiday period. Top domestic destinations like Ladakh, Srinagar, Goa, and Cochin are seeing sustained interest.

Anticipated decline in airfares

Despite the current high fares, there is some relief in sight, with travel industry executives anticipating airfares to soften from July.

“The July to September period being a traditionally lean/low season, with the reopening of schools reflecting the end of India’s summer holiday season, we do foresee a decrease in air pricing across carriers,” said Indiver Rastogi, president & group head, Global Business Travel at Thomas Cook (India) and SOTC Travel. "Our data reflects a significant drop of airfares starting in July of 13-17% as compared to last year."

And This: International airlines vie for the Indian globetrotter

Aligning with this trend, airlines such as IndiGo and Air India Express have launched discounted fares for the July-September period.

On Wednesday, IndiGo offered discounted fares until 31 May, starting at 1,199 for domestic and international flights for travel between 1 July and 30 September. Tata Group-backed Air India Express has similarly offered discounted fares starting at 1,177 until 3 June for bookings made for travel until the end of September.

“This kind of sale does come every year. It is done as July-September is considered lean season as traveling is less during this period because schools and colleges open up,” said Rajiv Mehra, president, Indian Association of Tour Operators. "However, they want to attract people who would have gone by train onto the flights, and they have been successful. Other airlines also have these kinds of sales going on, and after seeing IndiGo, I think Vistara might also come with an offer like this,"

As the travel industry navigates the aftermath of Cyclone Remal and prepares for the lean season, passengers can look forward to potential relief in airfares, making travel more affordable in the coming months.

Also Read: Folding four airlines into two is a tough task even for Tatas

Catch all the Industry News, Banking News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates.MoreLess
HomeIndustrySpot airfares soar up to 90% in the aftermath of Cyclone Remal

Most Active Stocks

Bharat Electronics

309.70
10:25 AM | 24 JUN 2024
4.7 (1.54%)

State Bank Of India

832.65
10:29 AM | 24 JUN 2024
-3.75 (-0.45%)

ICICI Bank

1,170.00
10:25 AM | 24 JUN 2024
11.95 (1.03%)

Indian Oil Corporation

166.30
10:21 AM | 24 JUN 2024
-0.45 (-0.27%)
More Active Stocks

Market Snapshot

  • Top Gainers
  • Top Losers
  • 52 Week High

Tube Investments Of India

4,286.55
10:13 AM | 24 JUN 2024
299.65 (7.52%)

Garden Reach Shipbuilders & Engineers

1,751.85
10:29 AM | 24 JUN 2024
106.7 (6.49%)

Bajaj Holdings & Investment

8,758.80
10:12 AM | 24 JUN 2024
531.75 (6.46%)

Mangalore Refinery & Petrochemicals

224.65
10:20 AM | 24 JUN 2024
12.15 (5.72%)
More from Top Gainers

Recommended For You

    More Recommendations

    Gold Prices

    • 24K
    • 22K
    Bangalore
    74,055.00-655.00
    Chennai
    74,274.00146.00
    Delhi
    74,492.00-145.00
    Kolkata
    74,201.0073.00

    Fuel Price

    • Petrol
    • Diesel
    Bangalore
    102.86/L0.00
    Chennai
    100.75/L-0.13
    Kolkata
    103.94/L0.00
    New Delhi
    94.72/L0.00
    OPEN IN APP
    HomeMarketsloanPremiumGet App