Previous Domestic air fares on key routes have risen by up to 40 per cent in six quarters due to rising passenger traffic and limited capacity. Despite this, domestic air ticket prices in India are among the lowest in the world, experts say, with no increase in inflation. India is one of the world’s fastest growing civil aviation markets and an average of 4.5 lakh passengers travel by domestic flights every day. While only a small percentage of the country’s population travels by air, capacity constraints are a major challenge as many aircraft are grounded mainly due to supply chain issues.
The average fare is the lowest in the world
Aviation consultancy firm CAPA India said average fares on top-20 domestic routes have not increased significantly in the last two decades, but they have increased by almost 40 per cent over the last six quarters. These routes include Mumbai-Delhi, Bengaluru-Delhi, Bengaluru-Mumbai and Delhi-Hyderabad. CAPA India said during a webinar this week that this trend is due to an average of 150 aircraft being grounded due to supply chain and other issues. According to the statement, structurally high pricing should continue till FY 2025-26.
If we look at inflation, the fare would have doubled
Sanjay Kumar, Chairman and Chief Executive Officer (CEO) of InterGlobe Technology Quotient Ltd, told PTI, “Fares have increased in the last three years, especially after the COVID-19 pandemic. Still, the average fare is one of the lowest in the world.” For example, the average airfare between Delhi and Mumbai will be around Rs 5,000 to Rs 6,000. It may seem like a big increase in percentage terms, but the amount of increase is not significant considering the overall inflationary pressure. CAPA India said the average fare of Rs 4,989 in FY 2003-04, adjusted for inflation, rose to around Rs 11,000 in FY 2019-20.
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