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Budget airlines lose edge as fuel surcharges come into play

The marginal price difference is prompting passengers to consider foreign carriers, which offer better services and additional benefits than budget airlines

Budget airlines lose edge as fuel surcharges come into play

Budget airlines in India are losing their competitive edge as fuel surcharges, imposed due to rising aviation turbine fuel (ATF) prices, narrow the fare gap between domestic and foreign carriers on many international routes. The difference in fares between Indian budget carriers and foreign full-service airlines has narrowed to around ₹1,000–2,000 on popular West Asian routes, making foreign carriers more attractive to passengers.

For instance, tickets from Kochi to Dubai are priced between ₹23,549 and ₹38,108 on Indian budget carriers, while Etihad Airways offers fares from ₹28,207 for the same route and date. This trend is evident on the Dubai–Kochi sector as well, with the fare difference remaining marginal after Indian carriers introduced fuel surcharges to offset rising operating costs.

Brief written by urgent.news from The Hindu's own syndicated text. Machine-written — may contain errors; check the original before relying on it.

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