This Diwali season brings welcome news for domestic air travelers in India, with airfares seeing a significant reduction of 20-25%. According to recent analyses, two major factors are driving this decrease: the growing capacity of flights and a recent decline in oil prices. However, a slight uptick in oil prices due to rising geopolitical tensions could impact future airfare trends.
Popular routes see steeper reductions
For passengers planning trips during this festive period, the reduced airfares offer substantial savings. The 20-25% drop is primarily based on bookings made 30 days in advance for one-way flights. Some popular routes have seen even steeper reductions:
Bengaluru-Kolkata: Airfares have dropped by 38%, from ₹10,195 last year to ₹6,319.
Chennai-Kolkata: Fares have decreased by 36%, now costing ₹5,604.
Mumbai-Delhi: Travelers will pay 34% less, with fares dropping to ₹5,762.
Delhi-Udaipur: The average fare is now ₹7,469, a decrease from ₹11,296 last year.
Delhi-Kolkata, Hyderabad-Delhi, and Delhi-Srinagar: All these routes have seen a 32% reduction in fares.
However, not all routes have benefitted from this trend. In some cases, airfares have risen:
Ahmedabad-Delhi: The fare increased by 34% to ₹8,758.
Mumbai-Dehradun: This route has seen a significant rise, with a 33% increase in fares, now at ₹15,527.
Factors Behind Last Year’s High Airfares
Alok Bajpai, CEO of ixigo Group, explains that last year’s Diwali airfares were notably higher due to a reduction in available flights following the suspension of Go First Airlines services. With fewer flights operating, demand outstripped supply, driving prices up. In contrast, this year has seen a reversal of that trend, as additional flights have been added, leading to greater availability and lower prices.
Furthermore, a 15% reduction in oil prices this year has contributed to the drop in airfares, providing passengers with more affordable travel options during the festive season. This has created a more competitive environment in the aviation industry, benefitting consumers with lower costs across many key domestic routes.
Potential for Rising Airfares
While current conditions have led to a significant reduction in prices, rising oil prices linked to ongoing geopolitical tensions could lead to an increase in airfares in the future. Should these tensions continue or escalate, it is possible that the current trend of lower prices may not be sustainable, and travelers may see airfares climb once again.
For now, however, domestic passengers have a prime opportunity to take advantage of more economical options during the festive Diwali period, enjoying significant savings compared to last year.
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