Indian air travellers are raising concerns over soaring airfares, especially for last-minute bookings, with many blaming the duopoly of major carriers and calling for government intervention.
Is the duopoly in Indian skies pushing up airfares? While aviation industry executives attribute any price increase to demand-supply factors, exorbitant last-minute fares on certain flights leave a sour taste among travellers.
“Someone promised to put hawai chappal walas on flights and ended up creating a duopoly with a complicit regulator! One way economy class Delhi -Kolkata ticket is going at even 32k, Indigo is at 21k!,” advocate Sanjay Ghose posted on social media platform X.
According to Ghose, these were one-way fares for travel on Wednesday morning ( April 16 ), available for booking on Tuesday evening.
Ghose is not alone. Across social media platforms, consumers are complaining of pricier air travel. “Flying abroad is turning out to be cheaper than traveling within India! Domestic airfares are skyrocketing—I hope the ministry looks into these high prices and brings some relief to regular travellers,” another consumer, Rajesh Garg, posted on X.
Domestic airlines are expected to operate 25,610 flights per week in summer schedule, which is a growth of 5.5 per cent on a year on year basis. On the international routes, capacity has grown 8 per cent on year on year basis.
Traffic is rising too as airlines carried 6 per cent more passengers on domestic routes in 2024 on a year on year basis. In the first two months of 2025 traffic has grown 11 per cent on a year on year basis.
While demand and seasonality (long weekends, school vacations, etc.) impact ticket prices, supply, cost, and competitive forces also play a part.
“Aircraft supply is not helping meet demand and airlines are forced to lease planes. Akasa Air and Air India Express have faced delivery delays and SpiceJet has not added planes as per plan,” an analyst with a domestic brokerage remarked. “ Crude oil price has declined and some downward repricing can happen but all of it will depend on competition. If airlines today are selling at a particular price point it means there is acceptance for that price. It is not hitting travel demand,” he said.
Consumer rights activists, however, are not convinced.
“There seems to be arbitrariness in airline ticketing pricing. Customers have a right to know the basis on which airfares are being charged. The DGCA cant shirk its responsibility because this is an issue of public interest,” said Shirish Deshpande, chairman of Mumbai Grahak Panchayat.
“While the government may not regulate airfares these must not be allowed to skyrocket as they repeatedly do. There has to be some accountability and transparency in air fares,” he added.
For its part, the civil aviation ministry has formed a dedicated “Air Sewa” cell to promptly handle customer complaints related to high fares. While the civil aviation regulator is also keeping a close watch on airfares, the Centre is also pushing states to reduce the value-added tax they levy on aviation turbine fuel.
Airfares moderated in 2024 relative to 2023 on routes monitored by DGCA, civil aviation minister Ram Mohan Naidu Kinjarapu informed Rajya Sabha last month. “ Airlines have also been sensitised to ensure reasonability while fixing the airfares and keeping passengers’ interest in mind,” Naidu said.
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Published on April 16, 2025
