Rising demand and supply chain issues send December airfares soaring

Indian flyers are likely to spend more this winter with airfares in December travel season peaking on the back of rising demand and capacity deployment issues faced by leading airlines due to a shortage of parts, said a report.

Travel websites have reported an upward trend in airfares during the quarter with Cleartrip.com witnessing a 6 percent increase from September.

Another online travel operator Ixigo has reported a 44 percent rise in airfares in the Bengaluru-Kolkata route for travel between December 21 and 31. During the same period, the New Delhi-Goa route witnessed a 40 percent rise and New Delhi-Bengaluru route saw ticket prices soar by 15 percent, Mint reported.

At the same time, spot fares for tickets on the Delhi-Mumbai route have risen from Rs 5,500 in September and Rs 9,000 in May to Rs 15,000-20,000.

Spot flight ticket prices on the Mumbai-Bengaluru route currently cost around Rs 4,000-Rs 17,000 against Rs 2,000 in September.

Similarly, spot fares for flights on the Delhi-Bengaluru route have soared from nearly Rs 7,000 in September and Rs 10,000 in May to around Rs 15,000-35,000 at present.

Airfares peak between October and December during winter and New Year holidays, Mint quoted a Cleartrip spokesperson as saying.

This year, prices have been affected by the high demand as many people are planning their vacation after a two-year hiatus due to the COVID-19 pandemic, the spokesperson has said.

A major factor impacting the prices of air tickets is the shortage of aircraft, some of which have been grounded due to maintenance and engine-related issues.

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According to aviation consultancy firm CAPA, more than 75 aircraft, or around 10-12 percent of the fleet, have been grounded, creating challenges for Indian airlines amid an already hostile cost environment, news agency PTI reported.

CAPA said airline capacity has been hit by serious supply chain issues that could proliferate in the next fiscal starting April 2023. This is not just impacting current deliveries, but will also have an impact on future deliveries.

Meanwhile, Indian low-cost carrier IndiGo on Monday, November 7, said that it had grounded around 30 aircraft, or around 10 percent of its fleet, due to global supply chain issues.

At the end of September, the airline had a fleet of 279 aircraft, Reuters reported.

Interglobal Aviation, which operates IndiGo, said that it was evaluating wet leasing of planes and other options to boost operations.