Air travel in India is becoming more expensive. Despite this, people’s enthusiasm for flying is not decreasing. According to DGCA data, the number of air travelers in the country reached 13 million last month. This is about a 7.3% increase compared to July 2023. In the first seven months of this year, the number of domestic passengers was 92 million, up from 88 million in the same period last year.
Domestic Air Fares Up 10 to 25%
According to the travel industry, domestic airfares have increased by 10 to 25%. The festive season has just started, but airlines have already begun raising fares. This quarter is usually considered a slow period for travel, yet airline sales are increasing. Airlines are offering discounts only on routes with fewer passengers. Jet fuel prices in India have always been high, which contributes to higher airfares. Airlines spend a large portion of their earnings on jet fuel.
Air India Group vs. IndiGo
With Tata Group’s acquisition of Air India, there are major changes in the market. Tata Group plans to merge Air India and Vistara into a single large airline. This will directly compete with IndiGo, which currently holds 91% of the domestic market share. After the closure of Kingfisher, Jet Airways, and Go Air, airlines are now more cautious about offering discounts.
SpiceJet’s Performance
According to DGCA, IndiGo’s market share increased to 62% last month. The combined market share of Air India, Vistara, and AI Express was 28.5%. SpiceJet’s market share has fallen to 3.1%. SpiceJet’s on-time performance was poor, with only 29.3% of its flights departing on time last month. AI Express had the best on-time performance, followed by Vistara and Akasa.
