Airfares Already Soar For Diwali!

'Airlines are aware that during peak times like Diwali, demand will be high, so prices remain steep even for tickets purchased 90 days ahead.'

Flying during Diwali is going to be expensive even if you are booking tickets almost three months in advance.

On some routes during the Diwali week (October 30 to November 5), one-way fare has already peaked to Rs 20,000 and beyond.

While Mumbai-Patna is going for Rs 20,074, Bengaluru-Varanasi is at Rs 23,662 and Bengaluru-Patna a little shy of Rs 30,000.

Among the other most expensive routes are Mumbai-Lucknow at Rs 19,292, Pune-Lucknow Rs 19,226 and Delhi-Guwahati Rs 18,573.

On average, airfares on major domestic routes for the Diwali week have risen by up to 25 per cent year-on-year due to strong demand, limited capacity growth and new ticket pricing strategy.

The average one-way fare on the Mumbai-Hyderabad route during this Diwali week is Rs 5,162, which is 20.9 per cent higher compared to the same period last year (November 10 to November 16, 2023), according to data from travel web site Ixigo reviewed by Business Standard.

Capacity crunch is playing out big time. Last Diwali, around 266 flights operated weekly on the Mumbai-Hyderabad route.

This time, airlines have scheduled 3 per cent fewer services on this route, according to airline executives.

"Approximately 70 out of IndiGo's 390 planes are currently grounded due to issues with Pratt and Whitney engines on A320neo family aircraft," explained an airline executive.

"The airline operated around 152 weekly flights on the Mumbai-Hyderabad route last November, but this November, it's scheduled to operate about 140 flights. Naturally, fares have increased," the executive added.

Additionally, Akasa Air is not scheduled to operate flights on this route in November. Last Diwali, Akasa Air operated 14 weekly flights on the Mumbai-Hyderabad route.

The airline, which has a fleet of 24 planes, has not received any new aircraft from Boeing since February amid regulatory challenges faced by the manufacturer.

On the Mumbai-Jaipur route, the number of weekly flights scheduled for this November is 154, which is 6.7 per cent fewer than in November last year.

Consequently, the average airfare on this route has jumped by 16.1 per cent to Rs 6,458 for this year's Diwali week.

According to Ixigo, the average one-way fare on the Delhi-Chennai route for this year's Diwali week is Rs 7,618, marking a 25.3 per cent increase compared to the same period last year.

Last Diwali, there were about 262 weekly flights on this route. This year, airlines have scheduled just a 3 per cent increase in services, according to another airline executive.

Additionally, the airline executive talked about a significant shift in ticket pricing strategies.

"Previously, the dynamic pricing system operated on the assumption that booking a ticket further in advance would result in a lower price. That's no longer the case. With limited capacity growth, airlines are aware that during peak times like Diwali, demand will be high, so prices remain steep even for tickets purchased 90 days ahead," the executive explained.

"This new approach carries a risk. If travelers avoid booking flights due to high prices and opt for cheaper alternatives like trains, airlines could be left with a substantial amount of unsold inventory as the departure date approaches. This might force them to lower prices to fill those seats closer to the departure date. All this could potentially result in a significant number of empty seats during the festival season," the executive added.

The executive noted that a similar strategy was implemented during last year's Diwali week, but it wasn't particularly successful.

"Airlines reduced spot fares, but the impact was limited. The load factors during last year's Diwali week were below expectations. Despite this, airlines are continuing with this strategy on key routes across India for this year's Diwali week as well," the executive said.

Aviation Minister Kinjarapu Rammohan Naidu addressed concerns about high airfares in the Lok Sabha last on August 9.

He emphasised the government's goal of making air travel more affordable and accessible, while acknowledging the need to balance passenger interests with airline viability.

Naidu noted that airfares are influenced by various factors, including market demand, beyond simple airline pricing decisions.

'We must ensure that the airlines are not under so much pressure that they cannot operate,' the minister said. 'So a balanced approach is needed.'

Feature Presentation: Rajesh Alva/Rediff.com