Airlines are contemplating an increase of 8% to 10% on metro routes, while 'exclusive' routes where not too many airlines fly may see a steeper hike of 12%-15%. All major airlines including Jet Airways, Kingfisher & Air India are planning to hike prices as per a report in ET. Even low cost carriers SpiceJet, IndiGo & GoAir are likely to increase prices.

Airlines expect the load factors to touch 85% to 90% levels in the three months. October will also mark the beginning of the festive season with Dussehra which will be followed by Diwali, Bakhrid & Christmas in December. The winter vacation for schools will also fall in December 'The low fare seats have been already been sold out for the 1st week of October. Airlines know that this is a good time for them to increase fares' said a senior executive working with a travel company.

Typically July to September is a lean season for airlines, while October to December is a peak season due to festivals & holidays. Airlines are also cautious not too increase airfares substantially as that would create a stir. Last year airfares had shot up nearly 200% due to strong demand and low supply. Airline regulator Directorate General of Civil Aviation (DGCA) had to intervene after which airfares cooled off a bit.

In order to avoid any controversy this time around, airlines are keeping DGCA in the loop about the possible airfare hike. 'This time the supply (Aircraft) has also increased unlike last year, so that kind of situation won't arrive where fares will shoot up exponentially' said a senior executive with a low cost carrier. Almost all airlines have increased their fleet size anticipating high demand in the upcoming season.