Thursday, October 21, 2021

Airfares jump sharply ahead of Diwali as demand rises

New Delhi: Air travel over the next few days will cost substantially more due to higher demand ahead of Diwali.

Airfares on certain key routes have jumped as much as 45 per cent on a year-on-year (Y-o-Y) basis, according to a Business Standard report.

The improvement in Covid-19 situation after the second wave and complete removal of caps on airlines are the main reasons behind higher airfares.

The complete removal of caps will allow airlines to accept bookings at full capacity. Moreover, the demand for air travel has seen a sharp surge during the festive season.

In comparison, airlines were allowed to operate at 70 per cent of their full capacity during the same period last year. Daily traffic recorded in November 2020 was also less than 50 per cent compared to pre-Covid times.

However, air traffic has surged to 70-75 per cent of pre-Covid times this year and it is likely to increase further ahead of Diwali. Many airlines have also revised their fares upwards to make up for losses encountered earlier this year.

Data compiled by online travel portal ixigo suggests that average one-way economy class fares on top routes such as Mumbai-Delhi, Mumbai-Kolkata. Bengaluru-Kolkata, Delhi-Kolkata are 30-45 per cent higher on a Y-o-Y basis.

The travel portal expects airfares to remain elevated at least till the end of the Diwali holidays. Aloke Bajpai, group CEO and co-founder of ixigo, told Business Standard that there is excitement for the festive season and the company has observed an increase in bookings for travellers who are either heading home or planning a leisure gataway during Diwali.

21/10/21 India Today

To Read the News in full at Source, Click the Headline


Post a Comment