Monday, January 08, 2018

Domestic airfares get 9-15% cheaper on increase in flights and competition

Mumbai/Delhi: A Parliamentary Committee has rapped airlines for the exorbitant rise in fares but data shows ticket prices in January are lower on an annual basis. Domestic fares for travel within a fortnight of booking are 9-15 per cent lower now owing to increased capacity and competition.

While the rupee has strengthened against the dollar, continuous rise in aviation turbine fuel price since July has negated the gains. Owing to competitive pressures however airlines have refrained from hiking fares.

While airlines are evaluating a fare hike, analysts say airlines would have to increase fares by around 7 per cent to maintain the current level of profitability.


According to data compiled by online portal MakeMyTrip, the average industry-wide fares for same day and next day travel have reduced 9-11 per cent compared to last January. Fares for travel up to seven days and between seven-fifteen days are 11 and 15 per cent lower.

GraphMakeMyTrip (MMT) said the maximum dip is in Mumbai-Delhi route where fares are lower by around 25 per cent while Mumbai-Bengaluru route is the only sector where fares have increased by around 5 per cent.
08/01/18 Aneesh Phadnis & Arindam Majumder/Business Standard


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