Recently, reports have surfaced regarding skyrocketing surges in airfare. Air travellers flying from Mumbai to Bengaluru, for instance, are seeing spikes as high as 530 per cent. Even routes between non-metro cities are reportedly dealing with increasing airfares. Flights from Ahmedabad to Dehradun has reported 45 per cent price increases compared to non tourist seasons.
The rise in airfare could be due to several factors, including increased demand for the upcoming summer vacations, strained relationships between India and Pakistan, and supply-side challenges. Airlines are facing capacity constraints and are also experiencing higher fuel costs, which are contributing to the increase in ticket prices.
Airfare prices are typically anticipated to rise as summer vacations draw near, largely due to the increased demand from travellers and potentially limited flight availability. This trend is especially significant for popular domestic and international destinations, which often see a substantial influx of tourists during the peak summer months.
As families and individuals start planning their summer vacations, travel demand usually escalates sharply, leading to a surge in flight bookings. Airlines often respond to this heightened interest by raising prices for many routes, especially those that are already in high demand.
Moreover, as the summer season approaches, many sought-after travel dates may quickly reach capacity. This can result in fewer available seats, prompting airlines to further increase prices to reflect the limited inventory. Savvy travellers are encouraged to book their flights early to secure better rates and ensure they can meet their preferred travel dates.
Geopolitical tensions can influence airfare trends, potentially leading to price increases. Airfares from India are expected to rise for flights to destinations in Europe, North America, and the Middle East due to the closure of Pakistan's airspace. This closure requires Indian airlines to take longer, more circuitous routes which could add 1.5 to two hours to flight durations. Longer routes mean more fuel is consumed, further increasing operational costs for airlines. As a result, airlines are likely to pass these additional expenses on to passengers in the form of higher fares.
Additionally, potential technical stops for refuelling can inflate flight prices even more. Major hubs like Delhi and Mumbai will see the most significant impact on fares for flights to Europe, North America, and the Middle East.
One significant factor that can lead to a rise in airfare this summer are major events, such as concerts, religious gatherings, and sports tournaments. These large-scale events often attract large crowds, resulting in a sudden surge in demand for flights to and from the host locations. As more travellers seek to book flights around these peak times, airlines may respond by increasing their fares to maximize revenue during these high-demand periods.
Fuel expenses are a significant factor in determining flight ticket costs. Since fuel is one of the major expenses for airlines, an increase in fuel prices often leads to higher ticket prices for passengers. Rising fuel costs can squeeze profit margins for airlines, resulting in increased ticket costs. Aviation fuel, also known as jet fuel, typically accounts for 20-30 per cent or more of an airline's operating expenses. When jet fuel prices rise, airlines are more likely to increase fares in order to maintain profitability.
It is recommended to plan ahead and book airline tickets a month in advance as airfares are likely to be cheaper then. If possible, avoid peak travel seasons. Consider shoulder seasons for popular destinations as airfares tend to dip during this period. Red-eye flights or early departures could also help save a few bucks. Check here for some hacks and tips to get cheaper airline tickets.