Price cap gone: Airlines compete to offer cheapest flight tickets

After more than two years, the government lifted the domestic airfare price ceiling as of August 31. This was supposed to have an impact on flight travellers. Airlines were likely to have more latitude to choose their own prices thanks to the move.

After the price cap is lifted, Akasa Air - launched a month back - is now engaged in a fare war with rivals. Flights between Mumbai and Ahmedabad, Mumbai and Bengaluru and Bengaluru and Kochi - where Akasa Air flies - now cost 20–25% less

Also Read: Akasa Air likely to operate over 150 weekly flights by September-end

As per the official website of Akasa Air, a flight from Bengaluru to Mumbai on September 13 costs as little as ₹2,268. The same price is available for the entire month of September. On the other hand, a flight from Mumbai to Bengaluru is so cheap that it doesn’t even cost ₹2,000. You heard it right. From Mumbai to Bengaluru, Akasa Air flight tickets between September 13 and 30 cost ₹1,996.

The late Rakesh Jhunjhunwala-backed airline is offering Bengaluru-Kochi flight tickets at ₹1,747 and Mumbai-Ahmedabad flight tickets at ₹1,397.

As previously indicated by IndiGo, airlines will be able to boost their passenger load factors by offering decreased tickets. An IndiGo spokeswoman praised the government's decision to lift the restriction on prices, saying it would allow carriers to adopt dynamic pricing. Many travel brokers are also certain that ticket costs will decrease in the future months, particularly in light of the impending festival season.

Also Read: Why the challenge to IndiGo hasn't taken off

"It will also help airlines increase their passenger load factor by offering discounted fares on respective sectors, offering affordable fares. Overall, this will help airlines sustain with better PLFs (Passenger Load Factors) and benefit consumers as airlines will be able to offer affordable fares," an IndiGo spokesperson told PTI.

Also Read: 'Prepared for failure': Rakesh Jhunjhunwala had replied when questioned on Akasa Air

Even IndiGo is offering tickets at a discounted price. For example, on September 13, flight tickets between Bengaluru and Mumbai are available at ₹2,269 while it is ₹2,418 for Mumbai to Bengaluru.

On the same day, a Mumbai-Bengaluru flight will cost at least ₹5,103 if you travel by Air India. The price is the same even if you travel by Vistara. The cheapest flight for SpiceJet on the same day costs ₹7,098.