airfare surge

The Indian government has allocated Rs 10,000 crore to stabilize jet fuel prices. This move aims to prevent airfares from becoming unaffordable for citizens and to support airline operations. The support will be provided as an interest-free advance to oil companies. This initiative is expected to maintain affordable air connectivity, boost tourism, and create employment opportunities across the country.

Indian aviation faces unprecedented turbulence due to a perfect storm of factors. From pandemic fallout and engine failures to airspace closures and a Middle East war driving fuel prices sky-high, airlines are struggling. Passengers face rising fares and cancelled routes as the sector grapples with deep financial distress and operational chaos.

Around 1.25 lakh Indian Haj pilgrims face a last-minute Rs 10,000 airfare hike due to rising jet fuel costs amid Middle East instability. Airlines initially sought a larger increase, but the government capped it, shifting the burden to pilgrims despite years of careful financial planning.

ATF or jet fuel, for international carriers became costlier on Friday, with prices rising by 5 per cent. This marks the second consecutive monthly increase as oil marketing companies continue to gradually pass on the impact of higher global energy prices.

The West Asia conflict is significantly impacting summer travel, prompting families to avoid international destinations due to safety concerns and escalating costs. This shift has led to a surge in bookings for domestic hill stations and coastal areas, with popular spots like Kashmir and Himachal Pradesh experiencing increased footfall and higher package prices.

Voters are rushing home to Kolkata for the second phase of elections, causing air and train fares to skyrocket. Fear of names disappearing from electoral rolls has led to a surge in last-minute bookings, with many making expensive one-day return trips solely to cast their vote.

As unpredictability hovers over international trips due to the West Asia conflict and rising airfares, travellers are not cancelling their plans but readjusting their itineraries

India has significantly hiked export duties on diesel and Aviation Turbine Fuel (ATF) to Rs 55.5 and Rs 42 per litre respectively, effective immediately. This move aims to curb rising fuel costs impacting airfares and protect airlines and passengers amidst volatile global oil prices. Petrol exports remain duty-free.

IndiGo is adjusting its fuel charges on domestic tickets from April 2, with new rates between Rs 275 and Rs 950, following a rise in aviation fuel prices. This comes after a previous surcharge announcement in March. While scheduled airlines see a moderate increase, non-scheduled operators face significantly higher fuel costs.

Domestic airfares may see relief as oil companies limited aviation fuel price hikes to 25%, with the government warning of intervention against unreasonable fare increases. However, international tickets to western destinations are expected to rise further due to longer flight routes, as jet fuel prices have more than doubled.