New Delhi: The Indian summer for domestic air travelers could be coming to an abrupt end midseason, with the highest jet fuel prices in about four years making flights uncomfortably expensive in the world’s fastest-expanding aviation market.
A tariff analysis of various domestic routes, done by yatra.com for ET, shows that fares during the first 15 days of May this year, as compared to the same period last year, have risen by up to 17%.
The increase in fares has already affected demand, and load factors (a measure of total seats filled per flight) at Indian airlines for May have started showing a decline.
“Average airfares for the key routes have spiked since the beginning of May with an increase of over 15% compared to April, 2018, and by 10% versus May last year (increase has been up to 17%),” said Sharat Dhall, COO (B2C) at yatra.com.
“This is especially visible in the last-minute fares which have gone up very significantly. This increase can be attributed to the 6.3% hike in Aviation Turbine Fuel prices at the beginning of the month as well as the increased demand in the peak summer holiday season.”
According to the Indian Oil website, jet fuel prices in Delhi, have increased by 26.4% to Rs 65,340 per kilolitre in May, 2018. Prices have also increased by about 6.3% over April. Jet fuel constitutes up to 50% of the total cost of airline operations in India, primarily due to higher taxes on the energy source.
18/05/18 Mihir Mishra/Econoimic Times
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A tariff analysis of various domestic routes, done by yatra.com for ET, shows that fares during the first 15 days of May this year, as compared to the same period last year, have risen by up to 17%.
The increase in fares has already affected demand, and load factors (a measure of total seats filled per flight) at Indian airlines for May have started showing a decline.
“Average airfares for the key routes have spiked since the beginning of May with an increase of over 15% compared to April, 2018, and by 10% versus May last year (increase has been up to 17%),” said Sharat Dhall, COO (B2C) at yatra.com.
“This is especially visible in the last-minute fares which have gone up very significantly. This increase can be attributed to the 6.3% hike in Aviation Turbine Fuel prices at the beginning of the month as well as the increased demand in the peak summer holiday season.”
According to the Indian Oil website, jet fuel prices in Delhi, have increased by 26.4% to Rs 65,340 per kilolitre in May, 2018. Prices have also increased by about 6.3% over April. Jet fuel constitutes up to 50% of the total cost of airline operations in India, primarily due to higher taxes on the energy source.
18/05/18 Mihir Mishra/Econoimic Times
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