Airfare Pricing

Airlines are cutting flights faster than demand is falling, keeping planes more than 85% full and leaving passengers with fewer chances of cheaper fares.

The West Asia war and rising fuel costs have pushed international airfares from India up by 30%, triggering a massive shift toward domestic tourism. Travellers are navigating a complex landscape of devalued currency and airspace closures.

While a partial rollback of jet fuel price somewhat shields domestic air travel, international flights and fares will be exposed to the full force of the doubling in ATF price.

With fare caps gone, India’s air carriers can reprice flights to account for rising fuel costs. Yet, on-and-off price controls must end. And for that, this market needs to recover its competitive intensity.

The drop in fares came despite the four major airlines—IndiGo, Tata-backed Air India group, Akasa Air and SpiceJet—operating a combined 550 aircraft during the quarter, 6% higher than the 518 aircraft operated a year ago.

The rupee’s slide past ₹90 to the dollar is making overseas travel costlier—not just to the US, but across Europe, the Maldives and parts of Asia, with uneven impact by destination.

AI is set to change the way we pay for almost everything. From airline tickets to online purchases, prices could soon be tailored for you—lower or higher than the average. With personalized pricing driven by know-all algorithms, how badly you need something would be hard to conceal.

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.

Demand for flights between major cities is weak, with airfares down by up to 28% due to lower economic growth. Despite this, leisure travel prices have risen by up to 18%, indicating a complex airfare landscape across different routes.

The West Asia war and rising fuel costs have pushed international airfares from India up by 30%, triggering a massive shift toward domestic tourism. Travellers are navigating a complex landscape of devalued currency and airspace closures.