Domestic airfares surge 18% in October-December

Air fares increased only by 4% on international routes from India to destinations in Asia Pacific, Middle East, Europe, Americas during the same period

Travel News
Travel News

The Kingfisher Airlines crisis coupled with inflated rates cast a gloom on the travel plans of the price-sensitive flyer as air fares on domestic routes shot up by 18% in the quarter between October to December 2011 as compared to the quarter before that, says a study done by a global travel industry firm. 

The American Express Business Travel monitor released on Thursday said that in comparison to 18% increase in domestic fares, air fares increased only by 4% on international routes from India to destinations in Asia Pacific, Middle East, Europe, Americas during the same period. 

The study does not name any airlines, but it clearly registers the high volatility witnessed in domestic air fares in calendar year, 2011. For instance: a year-on-year comparison of domestic air fares shows a 1% decrease in air fares in 2011 as compared to 2010. 

"That was because Air India dropped fares following its pilot strikes in the first half of the year. Many low-cost airlines were adding seats and doling out cheap fares as well,'' said an industry insider. Then, in the October-November period domestic fares shot up by 18% as compared to the quarter before that. 

"It was largely because of the change in demand-supply equation. Kingfisher Airlines was supposed to operate about 450 flights a day according to the winter schedule filed by the carrier in October. But from November onwards the airline drastically reduced its flight operations and now it plans to operate only about 170 flights a day,'' the source added. 

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