Amid increasing Aviation Turbine Fuel (ATF) prices and geopolitical uncertainties, the aviation industry is witnessing changes that may affect both domestic and international travel. Industry leaders such as IndiGo and Spicejet have responded by introducing fuel surcharges, with the extent of the increase varying based on flight distance. Short-haul journeys within 500 kilometers may see a minimum increase of approximately ₹300, while longer flights covering over 3,500 kilometers could get experience by up to ₹1,000 in additional charges.

An EaseMyTrip spokesperson said: “This move is an attempt by airlines to offset the rising ATF costs, inevitably impacting overall passenger fares. The supplementary charges will range from ₹300 to ₹1,000, depending on the travel distance.”

While this may lead to a slight dip in demand due to higher airfare prices, the airline industry is expected to report a substantial 65 per cent year-on-year revenue growth in Q4 2023, primarily driven by reduced fuel expenses. Despite the potential price hikes, the commercial aviation sector has been steadily recovering from the pandemic, maintaining a positive industry outlook.

Manan Bajoria, Group V-P, Growth at ixigo, explained: “Fares were already on the rise for the festival months of October and November due to high travel demand. Additional fuel charges are expected to increase fares by ₹400-500 on key routes.” For example, an IndiGo Delhi-Mumbai one-way flight, previously priced at an average of ₹4,700, has now surged to ₹5,300, marking a 12 per cent increase.

“We are closely monitoring the situation and any price adjustments,” said a spokesperson from Yatra.com. This development coincides with increased travel for festivals and excitement surrounding cricket events in various cities.

Meanwhile, amid rising tensions in Israel, Air India has temporarily suspended Delhi-Tel Aviv flights until 14 October due to the ongoing conflict, and is offering a one-time waiver to those canceling flights. In that quarter alone, 10,684 people travelled between Delhi and Tel Aviv, according to DGCA data. Additionally, several international airlines from Germany, the United States, and France have suspended operations to Tel Aviv.

In the April to June quarter of 2023, according to Directorate General of Civil Aviation data, 8,660 passengers from India flew to Egypt, while 10,684 flew to Israel.

Despite the increase in flight prices, the demand for travel remains robust, with demand surpassing supply. While the cost of flights may rise by 5 per cent to 10 per cent, it still represents a relatively small portion of overall travel expenses. Travelers continue to value spending time with loved ones and prioritize their travel plans. Business travel is also rebounding quickly and tends to be less affected by short-term price fluctuations or currency fluctuations, as noted by Arun Bagaria, Co-founder and CEO of TravClan.

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