A severe reduction in Jet Airways and IndiGo's capacity has led to an over 20 percent increase in spot airfares or tickets booked 7-15 days before departure. Both the airlines have been cumulatively cancelling over 200 flights daily due to unrelated reasons. Due to non-payment of dues, lessors have grounded around two-fifths of Jet Airways' fleet, curtailing the airline's capacity, while IndiGo is facing a shortage of pilots, forcing it to cancel around 30 flights daily since February.
Key metro routes such as Delhi-Mumbai and Delhi-Bengaluru have faced the major brunt of the reduced capacity. For instance, a ticket from Delhi to Bengaluru will cost 18,430 rupees for travelling after seven days from the booking date, which is higher by around 21 percent compared with January rates. Both the airlines used to operate around 1,700-2,000 flights daily in normal circumstances.
The repair work at the Mumbai airport has amplified the problems. There has been a significant increase in spot fares on main routes. It is in the range of 15-18% month-on-month. Typically, a Delhi-Mumbai return ticket costs around 15,000 rupees per passenger if booked 3-4 days in advance
Due to financial woes, Jet Airways has been cancelling 200 flights daily. Last week, sector regulator Directorate General of Civil Aviation (DGCA) said that the beleaguered airline is flying with just 70 planes out of its 123 aircraft fleet due to non-payment of dues to its lessors and lack of spares. "The repair work at the Mumbai airport has amplified the problems. There has been a significant increase in spot fares on main routes. It is in the range of 15-18% month-on-month. Typically, a Delhi-Mumbai return ticket costs around 15,000 rupees per passenger if booked 3-4 days in advance," Anand Menon, brand leader, leisure travel brand of FCM Travel Solutions told The Financial Express.
Indian airlines have been in the red in the past few quarters due to rising fuel costs, falling rupee and inability to pass on the costs to fliers due to cut-throat competition
Tickets booked well in advance are also inching north due to capacity constraints. According to data from travel website Ixigo, in March, the average one-way airfares between New Delhi and Pune rose 44 percent year-on-year to 5,973 rupees, while those on the New Delhi-Kolkata route jumped 42 percent to 5,678 rupees. The average fares between Mumbai and Hyderabad rose 35 percent to 3,228 rupees and between New Delhi and Chennai it surged 34 percent to 5,382 rupees.
"Since the load factor has been high as this is a busy season for travellers, the demand has been ahead of the supply, which has resulted in sharp increases in airfare," Sharat Dhall, chief operating officer (B2C), Yatra Online, told the Mint newspaper. Indian airlines have been in the red in the past few quarters due to rising fuel costs, falling rupee and inability to pass on the costs to fliers due to cut-throat competition. However, operators have started partially passing on the increased load to customers leading to a rise in fares.
Industry experts and sector analysts believe the situation could ease by April after the completion of repair work at Mumbai airport and improvement in Jet Airways' financial position. "The high airfares could ease in April if the situation at Jet Airways gets better and they are able to fly their grounded aircraft," Himanshu Periwal, vice-president, growth, Ixigo.com, told the Mint.
