Office Address
123/A, Miranda City Likaoli Prikano, Dope
Phone Number
+0989 7876 9865 9
+(090) 8765 86543 85
Email Address
info@example.com
example.mail@hum.com
123/A, Miranda City Likaoli Prikano, Dope
+0989 7876 9865 9
+(090) 8765 86543 85
info@example.com
example.mail@hum.com
Airfares
are set to rise ahead of the peak travel season as jet fuel prices have surged
for the third consecutive month, including a 14.12 per cent increase on
September 1.
This,
combined with the ongoing weakness of the rupee against the dollar, is expected
to lead to a five per cent increase in airfares during the upcoming (Q3)
traditionally high-demand quarter.
Additionally, the grounding of airlines like GoFirst and recurring engine
issues may dampen the festive cheer for air travellers.
A search
for frequented routes between Delhi-Mumbai or Delhi-Bengaluru for the upcoming
week showed that the airfares were ₹5,600 and ₹5,300 respectively, about
₹200-300 higher than usual.
With the
ongoing lean season, airlines will be in a predicament whether to pass the
price increase or absorb it to maintain the ticket price, according to
JagannarayanPadmanabhan, Senior Director and Global Head for Transport
Logistics and Mobility, Crisil. “With the upcoming festival season and with
more capacity coming in, the margins of airlines will be under pressure. To
maintain the same margin I expect about five per cent increase in air fares,”
he added…Some airlines have foreign currency debt. While domestic airlines have
a partial natural hedge on fuel to the extent of earnings from their international
operations, overall, their net payables are in foreign currency. However,
recovery in international travel lags, with an average of 43.8 million km per
month in 2023, down from 45.6 million in 2019. This meant that the possibility to recover costs from international
operations too remained bleak.
Experts noted that thus, airfares may
continue to remain elevated all through Q2 and Q3 of FY24.
