Travelers to Benefit from Lower Prices Due to Increased Capacity, Fall in Oil Prices .
Air passengers have reason to celebrate this Diwali, as average airfares on many domestic routes have dropped by 20-25% compared to last year, according to an analysis by travel portal ixigo. The decline in prices is attributed to increased capacity in the aviation sector and a recent fall in oil prices.
The analysis revealed that one-way airfares, based on a 30-day advanced purchase date, have seen significant reductions on various domestic routes. For 2023, the time period considered is November 10-16, while it was October 28-November 3 last year, aligning with the festive season around Diwali.
Significant Fare Reductions on Key Routes
The most substantial fare drop was recorded on the Bengaluru-Kolkata route, where average prices fell by 38% to Rs 6,319 this year, down from Rs 10,195 last year. The Chennai-Kolkata route saw a 36% decline, with tickets now priced at Rs 5,604 compared to Rs 8,725 last year.
Other notable fare reductions include:
Mumbai-Delhi: 34% drop to Rs 5,762 from Rs 8,788
Delhi-Udaipur: 34% drop to Rs 7,469 from Rs 11,296
Delhi-Kolkata, Hyderabad-Delhi, Delhi-Srinagar: 32% decline across these routes
According to ixigo Group CEO Aloke Bajpai, last year’s spike in airfares was largely due to limited capacity following the suspension of Go First airline. “This year, we’ve seen some relief as additional capacity has been added, leading to a 20-25% year-on-year dip in average airfares across key routes,” Bajpai told PTI.
Impact of Oil Prices-
The decline in oil prices, which have fallen 15% this year, has also contributed to the lower airfares, providing travelers with more affordable options during the festive season. However, Bajpai cautioned that oil prices are currently on a slight upward trend due to rising geopolitical tensions, which could impact future airfare trends.
Fare Increases on Select Routes
Despite the overall reduction in airfares, some routes have seen significant price hikes. The Ahmedabad-Delhi route experienced a 34% increase, with ticket prices rising to Rs 8,758 from Rs 6,533. Similarly, airfares on the Mumbai-Dehradun route surged by 33%, jumping to Rs 15,527 from Rs 11,710.
While most travelers can expect lower costs this Diwali, those flying on select routes may need to prepare for steeper prices.