The impact of higher airfares is expected to be significant, especially on trunk routes such as Delhi-Mumbai and Mumbai-Bengaluru, where a 5-7% increase in fares is anticipated.
As the summer travel season approaches, airfares are anticipated to surge by 20-25% on key routes, primarily due to disruptions in Vistara's flight operations. The airline has announced a reduction of 25-30 flights per day, constituting about 10% of its current capacity, in an effort to minimize inconvenience to passengers. This reduction is mainly focused on domestic routes and aims to provide operational resilience.
The aviation industry in India has been facing challenges for several months, including the bankruptcy of Go First and the grounding of over 70 planes by IndiGo due to engine issues. Consequently, spot fares on certain routes have increased significantly, with spikes of up to 39% observed between April 1-7 compared to the previous month.
Experts predict a surge of 20-25% in average airfares for both domestic and international routes during the summer schedule. This rise in fares has particularly impacted major domestic routes like Delhi-Goa, Delhi-Kochi, Delhi-Jammu, and Delhi-Srinagar, where prices have increased by approximately 20-25%.
The impact of higher airfares is expected to be significant, especially on trunk routes such as Delhi-Mumbai and Mumbai-Bengaluru, where a 5-7% increase in fares is anticipated. This might lead to a shift towards rail travel for shorter distances, especially for personal and family trips.
Despite the challenges, Vistara has demonstrated growth in its domestic departures, with a significant increase compared to the previous summer and winter schedules. The airline has also deployed larger aircraft on select domestic routes to accommodate more passengers or combine flights. Overall, while some airlines like IndiGo, Air India, and Vistara are increasing their flight operations, others like SpiceJet are reducing departures during the summer schedule.
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 "Airfares jump 20-25% amid Vistara crisis on key routes due to high travel demand")
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