Airfares are rising. Why? The reason is simple: "The World Has Changed".
Airfare prices have been rising at an alarming rate this year. With many airlines charging more than $100 for a round-trip flight, it's no wonder that travelers are keeping a close eye on their ticket prices.
Domestic airlines are faced with a huge crisis as they have to compete with low-cost carriers. The domestic carriers have to hike their airfares to fight back. Domestic airfare is going through a period of uncertainty and increased costs due to the worldwide pandemic. The airlines are trying to recover from the loss by hiking their fares.
Due to this reason, airfares are now increasing at an alarming rate. There have been reports that have stated that some airlines have even hiked their prices by 50% in comparison with last year's prices. Domestic airfares have increased by 75 percent since COVID-19 hit the country. The reason for this is that airlines are looking to cut costs and make more money.
The airline industry is a very competitive market, and airlines are always looking for ways to increase profits. To do so, airlines have been known to jack up their fares during peak travel times, such as summer and holiday seasons.
One reason for this is that it's much easier for airlines to raise prices during these periods because they know many people will book flights in advance, making it easier for them to sell more tickets.
There are several reasons behind the skyrocketing air Fares:
Airfares have been going through a skyrocketing phase in India in the recent past. They are going up at an alarming rate and it has become very difficult for a common man to afford air travel. The reasons behind this sudden increase in airfares are many, but here we will list some:
1. High fuel cost: Fuel prices are increasing with every passing day, which is increasing airfares as well. The fuel price hike is largely due to many factors including global prices, crude oil, taxes, duties, etc., which directly affect airlines and their expenses.
2. Increased number of flights: There has been an increase in the number of flights from airports across India which has also increased the number of passengers traveling via airways from one place to another across the country and hence resulting in an increase in fares too.
3. Increased prosperity of the people: The population growth and per capita income have led to an increased demand for air travel.
4. Increased number of tourists: The emergence of new destinations and rise in disposable income has led to an increase in tourists flying to foreign destinations. Fram the last two years everyone was canceling their travel plans due to covid-19 but now as the world started to reopen with a lot of new places to explore, the number of tourists is increasing, and hence, airlines are increasing the fares as everyone wants to travel now.
5. Increase in the number of airlines: An increase in the number of airlines has led to a rise in competition among them, resulting in lower fares for passengers.
6. Increased costs: The increasing cost of fuel, maintenance, and aircraft leasing have resulted in higher prices for passengers at airports.
Another reason why fares are high is that there have been several changes in technology, which have made it easier for passengers to travel by plane without having to carry heavy bags or even without having to go through security checks. This has also contributed to higher airfares as airlines try to make up for the losses by increasing their profit margin on each ticket purchased by customers.
Airlines are losing money because they are not able to earn enough money due to low demand and high competition. To overcome this problem, airlines have had to increase their prices which has increased airfares. They are not regulating the prices according to demand and supply. This means that the airlines are charging what they want regardless of how much they are earning or how much their competitors are charging.
On the other hand, the airlines are under a lot of pressure to increase the fares because of high-profit margins, which they need to maintain if they want to stay in business and not go bust.