Fewer flights, no fare caps: Domestic airfares set to soar

NEW DELHI: Be prepared for expensive domestic flights this summer, just like international flights have been since the outbreak of Iran war. The summer schedule is likely to see about 3,000 weekly fewer domestic flights - a 12% decline - over last summer's 25,610. With the fare caps gone and the number of flights reduced, cost of travel is set to soar under the summer schedule that is effective from March 29.

"A significant hike in aviation turbine fuel prices is expected from April 1. That will mean a serious increase in operating costs and fares. Though Air India group, IndiGo and Akasa have either hiked or levied, that will mean nothing compared to the ATF hike being anticipated. At those levels, only a handful of either profitable (read IndiGo) or backed by cash-rich groups (read Tata for Air India) will be able to operate flights as per demand. Some weak players simply won't have funds to fill up their planes and will struggle to remain afloat," said an industry insider.





Airlines know hiking fares beyond a point will mean hurting demand, which will then mean operating fewer flights. The approved schedule anyway is the maximum number of flights that an airline can operate. The number that is actually does depends on supply, demand and operating costs, among other things.
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