Airfares are increasing rapidly in the country. They have increased by about 40 percent in the last six quarters. Still, it is a matter of relief that they are now the lowest in the world. India is one of the fastest-growing civil aviation markets in the world. About 4.5 lakh passengers fly by various airlines every day. Despite this, the worrying thing is that a tiny part of the country’s total population travels by air. Also, many planes cannot fly at present due to various issues.
Rent Had Increased Nominally In Two Decades
According to aviation consultancy firm CAPA India, the average fare on the country’s top 20 routes has increased marginally in the last two decades. But, the fare has increased by almost 40 per cent in the previous six quarters.
These include Mumbai-Delhi, Bengaluru-Delhi, Bengaluru-Mumbai and Delhi-Hyderabad routes. This increase in fares has happened due to a shortage of about 150 aircraft. This surge in fares is expected to continue till the financial year 2026. There has been a sharp increase in fares after the Corona epidemic. Yet the average fare in India is the lowest in the world.
Many Airlines Closed Down Due To Low Air Fares
Sanjay Kumar, President and CEO of InterGlobe Technology Quotient Limited, said the average fare between Delhi and Mumbai will be around Rs 5,000. This may seem like a lot, but it is not much about inflation. He said that Indians are price-sensitive. Due to the pressure of low airfares, many airlines have had to close their bags from India.
Airfare In These Countries Is Higher Than India
According to aviation analytics firm Cirium data, India’s average domestic airfare was the lowest in 2023. The average economy class fare in India was US$80 for a distance of 622 miles, while in Australia, it was US$167 for 768 miles and in Brazil, it was US$114 for 709 miles. The same fare in the US was US$180 for 1,108 miles; in China, it was US$126 for 860 miles; in Europe, it was US$106 for 813 miles; and in Canada, it was US$173 for 928 miles.
