Business News

The government has said airfares have moderated in 2024 compared to 2023 and notably, a decline in air ticket prices was observed in various routes during festival seasons. Amid concerns in certain quarters that air ticket prices are ruling high, Minister of State for Civil Aviation Murlidhar Mohol told Rajya Sabha that airfares are not subject to regulation by the government and airlines have the flexibility to determine their airfares based on their operational needs while adhering to existing rules. "...the government generally refrains from regulating airfares to maintain market competitiveness, however, it remains vigilant, and the government intervenes to shift capacity from one sector to another to prevent exorbitant pricing to ensure passenger comfort and welfare," he said in a written reply on November 25. Airfares are dynamic and is a function of demand and supply. With continuous engagement with airlines & Online Ticketing Agents (OTAs) and keeping a watch on the movement of airfares by the government, Mohol said airfares have moderated in 2024 relative to 2023. "The airlines have also been sensitised to ensure reasonability while fixing the airfares and to keep passengers' interest in mind. Notably, during festival seasons, a decrease in airfares was observed in various sectors," he added. According to him, the trends in airfare prices in India exhibit considerable seasonality, prevailing fuel price, the capacity of the aircraft operating on the route, competition on the sector, season, holidays, festivals, long weekends and events. Besides, he said the pricing is significantly influenced by operational constraints at airports, adding that the combination of constrained capacity and elevated demand leads to fluctuations in airfares. "Given the complex dynamics of the Indian aviation industry, government is playing the role of a facilitator by way of creating enabling environment to support the growth of the sector," Mohol said.