Air India, IndiGo's expanding wings are making Indians' finances weak as airfare discounts fly out

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Key Points

Airfares on Indias busiest route, MumbaiNew Delhi, were 23% higher during January through August than 2022, according to Thomas Cook India and SOTC Travel..

India also saw the highest airfare surge 41% in the region in the first three months of this year compared with 2019, a study by Airports Council International Asia Pacific found...

The higher prices come at a time when two domestic carriers IndiGo and Air India Ltd. are set to control the bulk of one of the worlds fastest-growing aviation markets, while most smaller rivals struggle to stay afloat in the notoriously competitive market...

After a surge in prices during the summer, the government urged airlines to keep domestic airfares within reasonable levels, especially on routes that were operated by Go Air and saw the highest fare jump due to a demand and supply imbalance...

Airlines are cutting new compensation deals to retain employees as they rebuild post pandemic, and bearing high labor costs and attrition in indirect operations such as catering, maintenance suppliers and ground handling, he said.. Global supply chain snarls exacerbated by the war in Ukraine have hit aircraft production, resulting in scarcity of available planes..

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