Christmas cheer: Spot airfares on major domestic routes remain in check

Flying during this Christmas won't have you singing the blues about your budget. 

Spot airfares on major domestic routes, such as Delhi-Pune, Delhi-Mumbai, Mumbai-Goa, and Mumbai-Chennai, have either declined or increased marginally during December 23-December 25, 2023, compared to the same period last year.

“This situation is a classic example of ‘once bitten, twice shy.’ Prior to Diwali in November, airlines hiked fares significantly in anticipation of robust demand, only to find passengers scarce and load factors (occupancy rates) plummeting. Consequently, airlines had to initiate a last-minute sale to fill their seats,” Ameya Joshi, an aviation analyst and founder of the aviation blog ‘Network Thoughts’ told Business Standard.

This month, the priority is to maintain fares at a reasonable level to ensure consistently high load factors.

“Any fare adjustments (increase or decrease) made are marginal. Additionally, the decline in aviation turbine fuel (ATF) price over the past few months has enabled airlines to reduce their fares,” he added. 

On October 1, the price of ATF in Delhi was Rs 118,000 per kilolitre, and it came down to Rs 106,000 by December 1. ATF constitutes approximately 40 per cent of an airline's overall expenses in India.

According to airline officials, load factors on their flights have consistently stayed at or exceeded 90 per cent in the past few days. This stability is attributed to minimal fluctuations in airfares, providing passengers the confidence to opt for flight tickets for travel during Christmas.

The Delhi-Mumbai route is now India's busiest, witnessing operations of over 730 flights weekly.

According to information from travel portal Ixigo, the average airfare on this route during the December 23-December 25 period saw a year-on-year (Y-o-Y) increase of just 0.51 per cent.

This is for tickets booked one-three days prior to departure.
 

The Mumbai-Chennai route is also one of India's busiest.

As outlined by Ixigo, the average airfare on this route for the same period saw a reduction of 22.92 per cent, amounting to Rs 5,615 for tickets booked one-three days in advance.

While the central government does not control airfares in India, the Directorate General of Civil Aviation (DGCA) does have a tariff monitoring unit (TMU).

It monitors fares on 60 routes under four categories — tickets purchased 31 days before departure, 14 days, seven days and immediate fares.

Aviation Minister Jyotiraditya Scindia, on December 15, told reporters, “If we observe any major spike in fares, the TMU informs the airline and it self-regulates and brings the fare under control. Currently, the fares are under control, keeping in mind the seasonal fluctuation.”