India's domestic economy fares surge while business-class prices tumble in H1 2026
Average economy ticket prices on India's 20 busiest routes jumped sharply in the first half of 2026, while business-class fares fell on most of the same routes.
Cirium’s analysis of ticket data for India’s 20 busiest domestic routes reveals the steepest economy-class fare hikes since the removal of Covid-era caps in August 2022, with 18 routes posting increases in the first half of 2026; eleven of those saw rises over 15% and five exceeded 30%. Meanwhile, business-class fares dropped on most routes, with declines as deep as 49.3% year-on-year, reflecting a market correction after earlier price spikes.
IndiGo entered the premium segment in November 2024 with IndiGoStretch, adding competition, while Air India expanded premium capacity using former Vistara aircraft and refurbished A320neos. Executives cite tighter capacity, rising jet-fuel costs—up 32.7% after the February West Asia conflict—and a shift away from low-fare promotions as drivers of the divergent trends. The Ministry of Civil Aviation and IndiGo did not comment, and an Air India spokesperson noted higher premium passenger volumes despite mixed fare movements.
Why it matters
Rising economy fares affect millions of travelers, while cheaper business tickets reshape premium market dynamics.
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