Festive rush: Flight fares soar for domestic routes on Diwali weekend

Airfares on several key domestic routes are already showing a premium ahead of the Diwali weekend, as passengers working away from their hometowns begin planning their journeys home.

A check of airline fares for November 6-8 shows returns fares of around ₹18,000 on Delhi-Hyderabad on Air India and around ₹13,000 on Delhi-Mumbai on IndiGo.

Return fares on other major work-to-home corridors are also elevated, with Delhi-Bengaluru at around ₹16,000, Delhi-Kolkata at ₹17,000 and Delhi-Ahmedabad at ₹17,000 by Air India.

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The fares come as festive travel demand typically rises sharply, with passengers travelling within a narrow window to spend Diwali with their families. As lower-priced seats get booked, airlines' dynamic pricing systems can move passengers into higher fare categories.

The capacity backdrop is also tighter. According to aviation data provider OAG, India's domestic scheduled capacity is down 5.6% year-on-year in September to 15 million seats. IndiGo's capacity is down 4.5% to 11.26 million seats, while Air India's has fallen 8.8% to 3.22 million seats. The capacity reductions come amid higher operating costs and aircraft availability constraints, potentially limiting the cushion available to airlines during periods of peak demand.

The government has previously said that airfares are dynamic in nature and follow the principle of demand and supply. Fares also depend on factors such as the number of seats available, time of booking and other market conditions.

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The issue is particularly significant given the concentration of India's aviation market. IndiGo and Air India together account for more than 90% of the domestic market, according to the latest data.

That concentration means capacity decisions by the two largest carriers can have a significant bearing on seat availability during peak travel periods. IndiGo and Air India had cut domestic capacity amid higher fuel costs, potentially tightening seat availability and keeping fares elevated. .

With Diwali falling on November 8, travellers looking to fly home over the festival weekend could face a sizeable airfare bill, particularly on popular employment-to-hometown routes.

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