Air passengers might have a reason to smile this Diwali season as average airfares on many domestic routes have dropped by 20–25% compared to the year-ago period, according to an analysis.
Increased capacity and the recent fall in oil prices are considered to be among the factors for the fall in air ticket prices.
The analysis by travel portal ixigo showed that average airfare on the domestic routes have declined in the range of 20–25%.
The prices are for one-way average fare on a 30 days advanced purchase date basis.
For 2023, the time period considered is Nov. 10–16, while this year it is Oct. 28–Nov. 3. This is the time around Diwali.
The maximum decline of average airfare is 38% for a Bengaluru–Kolkata flight to Rs 6,319 this year from Rs 10,195 last year, according to the analysis.
The ticket price on Chennai–Kolkata route has fallen 36% to Rs 5,604 from Rs 8,725.
The average airfare for a Mumbai–Delhi flight has dropped 34% to Rs 5,762 from Rs 8,788. Similarly, there is a 34% decrease in ticket prices on the Delhi–Udaipur route to Rs 7,469 from Rs 11,296.
The decline is 32% on Delhi–Kolkata, Hyderabad–Delhi, and Delhi–Srinagar routes.
"Last year, airfares around Diwali had surged due to limited capacity, primarily driven by the suspension of Go First airline. However, this year we've seen some relief as additional capacity has been added since then, leading to a 20–25% YoY (year-on-year) dip in average airfares across key routes for the last week of October," ixigo Group Chief Executive Officer Aloke Bajpai told PTI.
According to him, the decline in oil prices, down 15% this year, may have also contributed to this downward trend, offering travellers more affordable options during the festive season.
Currently, oil prices are slightly on the upward trajectory amid rising geopolitical tensions.
Meanwhile, there has been a hike in airfares of up to 34% on certain routes.
While the ticket price has jumped 34% on the Ahmedabad–Delhi route to Rs 8,758 from Rs 6,533, the rise is 33% on the Mumbai-Dehradun route to Rs 15,527 from Rs 11,710, the analysis showed.
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