Slowdown blues: Diwali sales in slow lane for airlines, travel portals

An analysis of air fares on key metro routes indicates a slow pick-up in sales this Diwali. Domestic air traffic grew 3 per cent between January and August and demand has been largely driven by low fares. Capacity growth is largely flat as other airlines filled the void caused by Jet Airways’ collapse. Fares were likely to pick up for Diwali, beginning October 25; however, for now, airlines are holding up fare hikes.

A senior executive of a private airline attributed the softness in pricing to low advance bookings. Others blamed intense competition in the sector. “Unsustainable fares will lead to