Following an advisory group meeting among airlines and the government, airfares have witnessed a significant drop, providing much-needed relief to last-minute travellers facing emergencies, according to the leading travel platform ixigo.
“Over the past two days, we have witnessed a significant drop of 25 to 30 per cent in spot fares across key routes, which is excellent news for travellers across the country. It is encouraging to see that the discussions between airlines and the government have paved the way for much-needed relief for all last-minute flyers traveling due to medical or work emergencies,” stated Aloke Bajpai, Group CEO & Co-founder of ixigo.
Data provided by ixigo highlights the decline in one-way spot fares between June 1 and 7, 2023, showcasing the substantial reduction in airfares.
For the Delhi-Mumbai route, the average spot fare on June 7 was INR 14,912, indicating a 20 per cent decrease compared to average on June 1 of INR 18,654. For Delhi-Srinagar, on June 7, the average spot fare dropped to INR 10,553, experiencing a significant decline of 28 per cent compared to June 1 average of INR 14,616.
For Delhi-Pune, with an average spot fare of INR 14,356 on June 7, there was a 17 per cent decrease from June 1 average of INR 17,220. Bengaluru-Hyderabad travellers were majorly relieved, as on June 7, the average spot fare hit INR 5,281, representing a substantial 46 per cent decrease compared to the fare on June 5.
Similarly for the Mumbai-Chennai route, the average spot fare on June 7 plummeted to INR 3,999, marking a significant 44 per cent decrease compared to the preceding days. The Delhi-Hyderabad route, on June 7, had the average spot fare amounted to INR 15,230 and experienced a 14 per cent decrease from June 1 average of INR 17,761.
Despite economic uncertainties, the airline industry has achieved a noteworthy return to net profitability, with a 1.2 per cent net profit margin. The industry’s outlook is driven by rising revenues surpassing expenses, with passenger revenues projected to reach USD 546 billion. Additionally, an estimated 4.35 billion individuals are expected to travel in 2023, approaching the pre-pandemic figure of 4.54 billion recorded in 2019.
The Delhi-Ahmedabad route also witnessed a 19 per cent decrease when the average spot fare on June 7 reached INR 13,676, compared to the fare on June 5 which stood at INR 16,887, according to ixigo.These figures indicate the changes in one-way spot fares for various routes on different dates, emphasising the significant decrease in average spot fares on June 7 compared to June 1 and June 5.
The substantial reductions provide an opportunity for travellers to save significantly on their last-minute trips, promoting accessibility and flexibility for those facing urgent travel needs.
The positive outcome of the discussions between airlines and the government also demonstrates a collaborative effort to address the challenges faced by travellers during emergencies. The meeting between the Ministry of Civil Aviation and the airline operators earlier this week had resulted in the reduction of prices, according to an official statement.
According to the sources, Jyotiraditya Scindia, the Union Civil Aviation Minister, convened a meeting with airline representatives on Monday to address the issue of escalating airfares. The government has drawn attention to the alarming surge in airfares on specific routes and has advised airlines to closely monitor these routes.
This meeting between Scindia and airline representatives had taken place against the backdrop of an abnormal increase in airfares, primarily triggered by the grounding of GoFirst airlines. The situation has prompted the government to intervene and seek solutions to mitigate the impact on travellers.
Followed by the meeting and airlines reassessing the routes with higher prices, it is further expected that these decreased airfares will encourage more individuals to consider air travel, contributing to the recovery and growth of the aviation industry in the country.
