Domestic airfares up but int'l flights may get cheaper

As elevated jet fuel prices and fare caps continue to pose a major challenge for the airlines' profitability, it is unlikely that the domestic sector will see a major relief in the coming days. In fact, fares on some of the trunk routes in the sector have increased by 15-30 per cent over the last 2-4 weeks.

“Owing to the hike in fuel prices, there has been an increase in airline fares by 20 per cent across all domestic routes. We at Yatra.com have observed that domestic routes such as Delhi, Goa, Mumbai, Bangalore, Hyderabad and Kolkata have witnessed an increase in airfares as well as booking enquiries over the last few weeks," a spokesperson for online travel company Yatra.com told The Indian Express.

However, with regular international flights set to resume from March 27, airlines will now be able to operate more flights than the earlier ones restricted under the Covid-bubble arrangement, which, in turn, could allow airlines to capitalise on airfares despite rising oil prices with higher bookings.

Also read: India to resume international flights from March 27

“Suspension of regular international flights had created a demand-supply imbalance, making international travel expensive under the bubble agreements… With capacity coming back and with an increase in connectivity and more routes, we can expect a dip in international fares in the coming months,” said Ixigo co-founder and Group CEO Aloke Bajpai told the publication.

The Covid-19-induced travel restrictions have badly affected the Indian aviation industry in the last 24 months. However, with Covid-19 infections decreasing, air travel has been picking up, only to be hit by tensions in Ukraine after many countries announced sanctions.

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(With gaency inputs)