Summer getaways get costlier: Airfares up 10-15% on high demand, supply woes

Volatile aviation turbine fuel (ATF) prices and supply-side constraints are pushing domestic airfares in India skyward, with average ticket costs between major cities and popular holiday destinations seeing a 10-12% year-on-year increase in June. Domestic airfare in May has increased 10-15% from a year ago.

Rikant Pittie, CEO & co-founder of EaseMyTrip, attributes the increase in ticket prices to supply-side constraints amid grounded aircraft. "This is largely due to aircraft on ground situation and a reduction in flights by key players, creating supply-side constraints. The overall trend remains upward due to operational constraints, grounded planes and rising fuel expenses," Pittie told Mint.

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To be sure, out of a fleet of 818 commercial aircraft in the country, 133 planes are grounded due to engine and supply-chain concerns. Union minister of state for civil aviation Murlidhar Mohol informed parliament in March that over 680 aircraft were operational in the country.

High-traffic routes such as Delhi–Mumbai, Bengaluru–Delhi, Mumbai–Chennai, Kolkata–Bengaluru and Hyderabad–Mumbai continue to see an increase in airfare, per EaseMyTrip. With strong advance bookings, these routes have recorded an average increase of ₹500-600.

Ixigo, another travel portal, said that cooler domestic destinations like Shimla, Kullu-Manali and Dehradun are seeing a surge in demand. EaseMyTrip has recorded a rise in average airfare between 20% and 30% from metro cities to these cooler holiday spots.

"We’re seeing a strong surge in demand for cooler destinations like, Kullu, Dehradun, and Shimla. Flight bookings to these destinations have gone up by 50-100% YoY, this is pushing up ticket prices as passengers are preferring air travel," said Aloke Bajpai, Group CEO, Ixigo.

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Jyoti Singh Mayal of Travel Agents Association of India (TAAI) expects a strong summer travel season for the industry.

"We are seeing a good demand for both domestic as well as for international destinations. Expect both domestic and international travel to increase 15% YoY this season," said Mayal.

She also said that despite tensions between India and Pakistan, both outbound and inbound travel has not seen any impact. She said, “Though there was a minor hiccup for 2-3 days due to military operations, the confidence among travellers has not decreased."

Going International

Data by EaseMyTrip and Ixigo suggests that Indians are packing their bags for international destinations mainly across Southeast Asia and Europe. "This year, travellers are showing a growing interest in new destinations like Santorini in Europe and Bora Bora in Oceanic region. Reykjavik in Iceland is also gaining attention, Amsterdam and the Maldives continue to draw visitors," said Pittie

"This summer, we’re seeing a strong surge in international travel, especially to Southeast Asian destinations like Thailand, Vietnam, Malaysia, and Bali, which have seen an average 100–120% YoY spike in bookings. Easy visa policies and affordable travel costs are driving this shift towards more budget-friendly international getaways," said Ixigo's Bajpai.

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As per Ixigo, destinations like Malaysia and Thailand have recorded an increase in flight bookings by 226% and 180% respectively. Due to easy visa policies, destinations like Almaty have seen an increase in demand by 77%. Similarly, Vietnam and Bali recorded a bookings surge of 64% and 52%, respectively.