Tuesday, May 28, 2024 As the summer travel season heats up, Indian airlines are experiencing a significant surge in airfares, with prices soaring by as much as 40%. This sharp increase is attributed to a combination of heightened demand, rising operational costs, and limited seat availability. For travelers planning vacations or business trips within the country, the higher costs could be a substantial burden.
One of the primary factors driving the fare hike is the surge in travel demand as COVID-19 restrictions have eased. With more people eager to travel after prolonged periods of lockdown and limited movement, airlines are witnessing an unprecedented demand for tickets. Popular tourist destinations and major business hubs are seeing particularly high booking rates.
Airlines are also grappling with rising operational costs. The global increase in fuel prices has had a cascading effect on airfares. Jet fuel prices have been on the rise, driven by geopolitical tensions and supply chain disruptions, making it more expensive for airlines to operate their fleets.
Additionally, the depreciation of the Indian rupee against the US dollar has further inflated costs, as many operational expenses are incurred in dollars. The aviation sector is also facing a supply-side constraint. Many airlines had reduced their fleet sizes and cut back on services during the pandemic.
While demand has bounced back, capacity expansion has not kept pace. The resultant shortage of available seats has le.
