Domestic airfares get 9-15% cheaper on increase in flights and competition

Significant capacity addition by airlines may prove a deterrent despite increase in fuel price

A Parliamentary Committee has rapped airlines for the exorbitant rise in fares but data shows ticket prices in January are lower on an annual basis. Domestic fares for travel within a fortnight of booking are 9-15 per cent lower now owing to increased capacity and competition.

While the rupee has strengthened against the dollar, continuous rise in aviation turbine fuel price since July has negated the gains. Owing to competitive pressures however airlines have refrained from hiking fares. 

While airlines are evaluating a fare hike, analysts say airlines would have to increase fares by around 7 per cent to maintain