Monday, July 02, 2018

Summer fares: As airlines sweat it out, travellers make hay this summer

New Delhi: Holidaymakers have made hay this summer, cashing in on lower fares pretty much all across the country. Airlines, though, have felt the heat with the higher seat capacity raising the competition and lowering occupancies. While more passengers have flown to their destinations, this time around — near 12 million in May this year compared with 10.2 million in May 2017 — airlines are likely to reap lower yields; fares in May and June have been lower by about 4-8% than in the comparable period of 2017. The double whammy comes from higher fuel costs, up by about 29% year-on-year (y-o-y).

To make up, airlines have increased prices for tickets bought 0-15 days before travel period. “For travel booked a month in advance, fares are still low due to competition and more seats,” Balu Ramachandran, head, air and distribution, Cleartrip, said.

Online travel portal Yatra.com shows return fares on busy sectors like Delhi-Bengaluru, Delhi-Chennai and Delhi-Hyderabad were lower during May and June in 2018 for travellers booking 30 days ahead.

However, fares on the Delhi-Mumbai route were up by 5% since relatively, less capacity has been added. This is because the Chhatrapati Shivaji International Airport can handle an annual capacity of 48 million passengers.
02/06/18 Financial Express

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