Steady course: Year-end travel plans not hit yet as airfares remain stable

Airfares during the Christmas and New Year period have remained largely largely stable as fuel prices are low, load factors (occupancy rate) in flights are robust, and airlines are expecting the demand to pick up further, say industry players.

 

According to data from travel website Ixigo, which has been reviewed by Business Standard, the average airfare on the Delhi-Goa route for travel between December 24 and January 1 has stood at Rs 9,301, just two per cent higher than during the same period last year.

 

The fares were considered for tickets booked 30 days in advance. Goa remains one of India’s most popular destinations for Christmas and New Year celebrations. 

 

The Delhi-Kolkata route stands as one of India's busiest, witnessing the operation of over 160 flights weekly. 

 

According to ixigo, the average airfare on this route during the December 24-January 1 period has experienced a year-on-year decrease of 29.7 per cent for tickets booked 30 days prior to departure.

 

Airline officials stated that load factors have remained consistently high in recent weeks and are expected to stay strong in the weeks ahead.

 

“Although there are certain capacity constraints due to aircraft groundings and other issues, airfares have largely remained stable. Demand for the Christmas period is expected to rise further in the coming days,” one official said. 

 

According to aviation analytics firm Cirium, Indian carriers are scheduled to operate 22,645 flights per week in December, an increase of approximately eight per cent compared to the same month last year.

 

Currently, around 130 of the 730 commercial aircraft in the country are grounded due to supply chain disruptions, financial challenges, and engine-related issues.

 

Fuel prices have also decreased in December this year compared to the same period last year.

 

On December 1, aviation turbine fuel (ATF) prices were Rs 91,856 per kilolitre in Delhi, about 14 per cent lower than in December 2023. ATF costs account for nearly 40 per cent of an airline's total operating expenses.

 

Just like Delhi-Kolkata route, the Bengaluru-Hyderbad route is recognised as one of India's busiest.

 

According to ixigo, the average airfare on this route for the December 24-January 1 timeframe has observed a year-on-year reduction of 6.9 per cent, amounting to Rs 3,526 for tickets booked 30 days in advance of departure. 

 

While the central government does not control airfares in India, the Directorate General of Civil Aviation does have a tariff monitoring unit that monitors fares on 60 routes in four categories: Tickets purchased 31 days before departure, 14 days, seven days and immediate fares.

 

In December 2023, aviation minister Jyotiraditya Scindia told reporters: "If we observe any major spike in fares, the Tariff Monitoring Unit 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."