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This Diwali season, travelers are receiving a welcome surprise as the cost of airline tickets has seen a significant reduction. A report, based on an analysis by Ixigo, highlighted that ticket prices have dropped by 20-25% compared to last year. This decline is attributed to an increase in the capacity of airlines to carry passengers and a notable 15% decrease in oil prices, amidst ongoing geopolitical tensions.
The reduction in airfare is witnessed across several key routes. For instance, the price for a flight from Bengaluru to Kolkata has plummeted by 38%, with last year's fare of ₹10,195 dropping to just ₹6,319 this year. Similarly, the fare between Chennai and Kolkata has decreased by 36%, from ₹8,725 to ₹5,604. Flights from Mumbai to Delhi, Delhi to Udaipur, Delhi to Kolkata, Hyderabad to Delhi, and Delhi to Srinagar have also experienced significant price drops, all within the range of 32%.
Factors Influencing Airfare Reduction
Ixigo Group CEO, Aloke Bajpai, explained the rationale behind the decline in prices, stating, "Last year, airfares around Diwali had surged due to limited capacity, primarily driven by the suspension of Go First airline." He further added, "However, this year we've seen some relief as additional capacity has been added since then, leading to a 20-25% year-on-year dip in average airfares across key routes for the last week of October." The 15% fall in oil prices this year, primarily due to rising geopolitical tensions, also played a significant role in reducing ticket costs.
While most routes have seen a decrease in fares, there are exceptions where air ticket prices have surged. For example, the fare on the Ahmedabad-Delhi route has gone up by 34% to ₹8,758 from ₹6,533, and the Mumbai-Dehradun route has seen an increase to ₹15,527 from ₹11,710, according to the analysis.
This adjustment in airfare comes as a result of both increased capacity by airlines and fluctuating oil prices, which are influenced by global events. The data for this analysis was drawn from average one-way fares on a 30 days advanced purchase date (APD) basis, for the period from November 10-16 this year.
The sharp decrease in ticket prices presents an opportune moment for travelers planning their Diwali vacations. With more affordable air travel options, families and individuals can now look forward to celebrating the festival of lights with their loved ones without the burden of high travel costs. This year, the combination of increased passenger capacity and lower oil prices has brought a sigh of relief to many, making air travel more accessible during one of the most celebrated festivals in India.
