The next few days’ air travel will cost substantially more due to higher demand ahead of Diwali. According to a Business Standard report airfares have jumped as much as 45 per cent on a year-on-year (Y-o-Y) basis, on certain key routes.
Complete removal of caps on airlines and improvement in Covid-19 situation after the second wave and are the main reasons behind higher airfares.
Airlines can now accept bookings at full capacity after the complete removal of caps along with the demand for air travel has seen a sharp surge during the festive season.
During the same period last year, airlines were allowed to operate at 70 per cent of their full capacity. As compared to pre-Covid times, daily traffic recorded in November 2020 was also less than 50 per cent
However, air traffic has surged ahead of Diwali to 70-75 per cent of pre-Covid times this year and it is likely to increase further. To make up for losses encountered earlier this year, many airlines have also revised their fares upwards.
No comments: