Not so long ago, budget airlines were the go-to choice for cost-conscious travellers. Affordable fares made air travel accessible to millions. But today, booking an air ticket—even on a low-cost carrier—feels like a premium experience, at least in terms of pricing. Whether last-minute travel, or pre-planned trips, airfares across budget airlines are soaring, often rivalling full-service carriers.
From Mahakumbh in Prayagraj to the Coldplay music concert in Ahmedabad, and now the approaching summer holidays, spikes in airfares have become the norm rather than the exception. An airline ticket on the Delhi-Prayagraj route, which otherwise costs around Rs 5,000, touched to Rs 30,000-40,000 during the ongoing Mahakumbh.
The Director General of Civil Aviation’s (DGCA’s) intervention to check the surge in airfare hasn’t made much difference, though the airlines said they flew more aircraft on the route. Rising demand, limited capacities, and strategic pricing by carriers have contributed to the surge in prices, leaving travellers to wonder whether travelling by budget airlines would truly be affordable again.
Getting flight tickets at reasonable rates if booked three to four months in advance is a thing of the past now. With a rise in the number of people travelling by air, even sale offers by airlines don’t lower the ticket prices on high-demand sectors such as metro cities.
COSTLIER VACATIONS
Airfares to Southeast Asian destinations, like Bali, Phuket, and Singapore, and hill stations and beaches in the domestic sector surge during vacations.
“Demand surges as travellers plan their holidays, leading to higher ticket prices, especially for popular tourist destinations. Additionally, factors such as fuel costs, airline capacity, and geopolitical influences can further impact airfare trends,” Jatinder Paul, CEO and Co-founder of travel agency Viacation, tells Business Today.
Despite new aircraft orders and airport upgrades, increased capacities have not yet translated into lower fares. “Internationally, North America and Europe are seeing modest airfare increases as airline capacity rises,” Paul says.
In India, though, domestic air traffic is projected to grow 7-10% this year. As per DGCA data, there was a 6.12% increase in total domestic air passengers to 161 million in 2024 from 152 million on 2023.
As the booking phase for the summer holiday season begins, airlines are offering attractive discounts to inspire early bookers.
“As a result, currently there is merely a 5-10% increase in fares for popular domestic destinations such as Kashmir, Leh, Andamans, and Chandigarh. From an international perspective, European destinations like Spain and Scandinavian cities—Copenhagen and Stockholm—are witnessing higher advance fares of 4-5%,” Indiver Rastogi, President & Group Head, Global Business Travel, Thomas Cook (India) and SOTC tells BT.
RISING EVENT TOURISM
A similar surge was seen during the British rock band Coldplay’s concert in Ahmedabad in January this year as well as during the Indian Premier League or during the ICC Men’s World Cup final, also held in Ahmedabad in 2023. According to the travel industry, concerts, religious gatherings, and global sports tournaments significantly influence travel patterns and result in a temporary spike in airfares.
“With event tourism witnessing a surge in demand, major events like the Mahakumbh or global music concerts like Coldplay lead to demand-supply constraints, with an understandable, though temporary, uptick in air pricing. But such fluctuations are typically limited to the event period,” Rastogi says.
With aspirations rising, the travel industry is witnessing an uptick in demand from Tier II and Tier III cities such as Bhubaneswar, Indore, Jaipur, and Lucknow, indicating a broader appetite beyond major metros. That, too, is adding pressure on existing capacity. @richajourno