Average Economy-Class fares on routes increased by 46% this Raksha Bandhan

Economy-Class: Average economy-class fares on key routes in India have risen by up to 46 per cent amid rising demand around the Raksha Bandhan weekend in August. The weekend falls between August 15 and 19, with Independence Day on Thursday (August 15) and Raksha Bandhan on Monday (August 19). Business Standard reviewed data from ixigo, India’s leading travel marketplace, and found out average fares across routes. The average fare for the Bengaluru-Kochi route for August 14-20 is Rs 3,446 and is 46.3 per cent higher than the same period in 2023. The average fare for the Bengaluru-Mumbai route for the period August 14-20 is Rs 3,969 – 37.6 per cent higher than the same period in 2023. Ameya Joshi, aviation researcher and founder of aviation blog Network Thoughts, spoke to Business Development about this development. According to Joshi, “Long weekends lead to a rise in airfares… Capacity addition in Indian skies has been limited and such long weekends lead to a sudden surge in some sectors, beyond the capacity added by airlines.”

A large number of aircraft are grounded in India due to engine problems, supply-chain difficulties or financial issues, reports Business Standard. If an aircraft or its passengers are grounded, they are left on the ground and are not allowed to fly. India’s largest airline IndiGo said on July 26 that about 70 of its 382 aircraft are grounded. This has not led to much increase in the number of flights, leading to a reduction in capacity addition on various key routes. According to Sirius Aviation AG, a leader in innovative aviation solutions, the number of flights between Bengaluru and Mumbai has declined by 4.8 per cent in August 2024 compared to August 2023. Allocation for Civil Aviation Ministry as per Union Budget 2024-25 As per the Union Budget 2024-25 presented in Parliament by Finance Minister Nirmala Sitharaman on July 23, the ministry will get an allocation of Rs 2,357.14 crore. In the revised budgetary allocation for 2023-24, Rs 2,922.12 crore was allocated for the ministry.