There is bad news for you on the inflation front. The airline companies, which were troubled by COVID and suffered heavy losses, are now compensating for their losses from your pocket. After things became normal from COVID, people are now flying fiercely and at the same time the government has removed the limit on airfares i.e. fair cap. After this, flights have become very expensive at this time. In this fire of inflation, ATF i.e. Aviation Turbine Fuel has also done the work of fueling ghee. Airlines are troubled by the high cost of ATF and this is also one of the reasons why flats have become so expensive at this point of time. At present, airfares on most busy air routes have not only crossed the pre-Covid level but are also at the highest level in the last few years.
According to a news, at this time the air fare around Diwali is 40 percent more than last year. On the other hand, if you compare it with the year 2019 before COVID, then the airfare is about two to three times more. For example, in 2019, where the fare for non-stop flight from Delhi to Mumbai was around Rs 3,200, this year this fare has gone up to around Rs 6,000. Similarly, fares on popular routes like Mumbai-Kolkata, Kolkata-Delhi and Delhi-Bengaluru have seen almost the same increase.
Increase in the number of air passengers
A good news for the airline industry is that this sector has recovered to a great extent from COVID. You can understand this from this figure of DGCA. Between January and August this year, the number of domestic air passengers was 77 million, which is 67 percent more than last year.
A major reason for such an increase in fares in the festive season is also the increasing demand. In the festive season, a large number of people are not only going to their homes from other cities, but many people are also going to enjoy the holidays in places like Andaman-Nicobar, Goa, Himachal Pradesh, Kerala, Kashmir. This is the reason that a huge increase of 50 to 80 percent is being seen in the fares of these travel destinations from big cities.
read this also
ATF spoiled the game
Apart from this, as we talked about ATF earlier also, ATF has also acted as a villain in inflation. The price of ATF has almost doubled in the last one year. You can understand this from this figure. Where ATF was getting around Rs 65 (64.76) per liter in Mumbai in September last year, now its price is Rs 120 per liter. However, there can be one thing of relief for you that airlines are increasing their capacity to meet the increasing demand. For example, Vistara and Akasa Air have talked about increasing the number of their daily flights.