Indian airfares likely to stay high as fuel costs and geopolitics pressure airlines

According to Kinjal Shah of ICRA, Indian airline tickets are expected to stay high in the near term, with any price correction hinging on sustained reductions in fuel costs and a de-escalation of geopolitical disruptions. Recent statistics reveal one-way fares climbing between 37% and 68% year-on-year on key domestic routes such as Delhi-Hyderabad and Mumbai-Kolkata. Fuel price hikes, a depreciating rupee and the West Asian conflict’s impact on airspace have all added to airlines' cost pressures.

Domestic flight schedules fell 5% year-on-year for the October-December period, while seat capacity slipped modestly. The government’s proposed fare-monitoring framework aims to curb extreme price spikes but does not promise lower fares during regular holiday peaks. Shah notes that meaningful fare relief would require both fuel price moderation and the resolution of airspace constraints.