Festive travel squeeze? Airfares jump up to 68%

As Indians prepare to travel home for the festive season, they may face significant airfare hikes, with some domestic routes seeing ticket prices rise as much as 68% compared to last year, according to a report by ET. This price surge comes as airlines balance high travel demand with increased fuel costs and fewer flight options on certain routes.

The number of domestic flights scheduled for October-December is down 5% year-over-year, while seat capacity is only down 1.2%, data from OAG shows. Airlines are operating fewer services but fitting more seats onto each flight using larger aircraft, which helps keep overall capacity stable. However, the impact of reduced flight frequencies varies by route, with airlines adding capacity on some sectors while cutting back on others.

The busiest day for domestic capacity this quarter is expected to be December 7, with 589,386 seats scheduled, down from 603,634 seats on the same day last year. Popular routes such as Delhi-Hyderabad, Mumbai-Kolkata, and Delhi-Goa have seen average one-way fares increase by 68%, 51%, 39%, and 37% respectively. In contrast, routes like Delhi-Navi Mumbai and Ahmedabad-Kolkata have seen much larger increases, with capacities more than tripling and soaring by 37%.

The rise in fuel prices is a major factor in these fare increases. Domestic aviation turbine fuel (ATF) prices surged from ₹121 to ₹137 per litre, up ₹16 per litre over the past month, while international fuel prices also rose. Airlines bear a significant portion of their operating expenses in fuel, which accounts for 30-40% of their costs.

While domestic travel demand remains strong, with bookings up 10% year-on-year for Goa, other destinations like Leh, Dehradun, and Amritsar are also experiencing strong growth. However, international travel is expected to see an added boost due to easier visa access and improved connectivity. International fares are projected to increase by 30-50% compared to last year, with domestic bookings and searches remaining steady, particularly on high-demand routes between major metros.