Air Traffic Surges, But Fares Remain Flat Over Decade

04 Dec 2024 CW Team

Airfares saw a spike in 2023 following the post-Covid travel recovery but have since returned to pre-pandemic norms. Walsh noted that airlines face difficulty covering operating costs as fare increases have not kept pace with inflation, particularly the high costs associated with fuel.

Experts attribute the pricing challenge to fierce competition in the Indian aviation sector, despite significant market consolidation. Over the last decade, three airlines have shut down, and several mergers have occurred. Yet, this has not eased competitive pressures, as capacity lost to closures like Jet Airways in 2019 and Go First in 2023 was quickly replaced by expansions from IndiGo, Air India, and Akasa.

With IndiGo and Air India now carrying nine out of ten domestic passengers, the market operates as an effective duopoly. However, executives argue that competition remains intense. Airlines are compelled to offer competitive fares to attract customers, particularly on new routes, where price differences as small as Rs 200 can sway passengers toward trains.

Globally, airline consolidation has often benefited consumers by enabling larger carriers to spread fixed costs across broader operations, leading to lower fares. In India, however, airlines still face the challenge of stimulating demand to convert rail passengers to air travellers. "Competitive dynamics ensure ticket prices remain customer-friendly, as filling planes is a top priority," said Air India CEO Campbell Wilson.

(ET)

Despite a 62% increase in passenger traffic since 2015, Indian airlines have struggled to raise fares enough to offset rising costs and inflation, according to Willie Walsh, Director General of the International Air Transport Association (IATA). Domestic airfares have remained close to or below 2015 levels, even as jet fuel prices and overall inflation have surged. Airfares saw a spike in 2023 following the post-Covid travel recovery but have since returned to pre-pandemic norms. Walsh noted that airlines face difficulty covering operating costs as fare increases have not kept pace with inflation, particularly the high costs associated with fuel. Experts attribute the pricing challenge to fierce competition in the Indian aviation sector, despite significant market consolidation. Over the last decade, three airlines have shut down, and several mergers have occurred. Yet, this has not eased competitive pressures, as capacity lost to closures like Jet Airways in 2019 and Go First in 2023 was quickly replaced by expansions from IndiGo, Air India, and Akasa. With IndiGo and Air India now carrying nine out of ten domestic passengers, the market operates as an effective duopoly. However, executives argue that competition remains intense. Airlines are compelled to offer competitive fares to attract customers, particularly on new routes, where price differences as small as Rs 200 can sway passengers toward trains. Globally, airline consolidation has often benefited consumers by enabling larger carriers to spread fixed costs across broader operations, leading to lower fares. In India, however, airlines still face the challenge of stimulating demand to convert rail passengers to air travellers. Competitive dynamics ensure ticket prices remain customer-friendly, as filling planes is a top priority, said Air India CEO Campbell Wilson. (ET)

Infrastructure Urban

05 Nov 2025

TBO Tek Q2 Profit Climbs 12%, Revenue Surges 26% YoY

TBO Tek Limited one of the world’s largest travel distribution platforms, reported a solid performance for Q2 FY26 with a 26 per cent year-on-year increase in revenue to Rs 5.68 billion, reflecting broad-based growth and improving profitability.The company recorded a Gross Transaction Value (GTV) of Rs 8,901 crore, up 12 per cent YoY, driven by strong performance across Europe, MEA, and APAC regions. Adjusted EBITDA before acquisition-related costs stood at Rs 1.04 billion, up 16 per cent YoY, translating into an 18.32 per cent margin compared to 16.56 per cent in Q1 FY26. Profit after tax r..

Infrastructure Energy

05 Nov 2025

Northern Graphite, Rain Carbon Secure R&D Grant for Greener Battery Materials

Northern Graphite Corporation and Rain Carbon Canada Inc, a subsidiary of Rain Carbon Inc, have jointly received up to C$860,000 (€530,000) in funding under the Canada–Germany Collaborative Industrial Research and Development Programme to develop sustainable battery anode materials.The two-year, C$2.2 million project aims to transform natural graphite processing by-products into high-performance, battery-grade anode material (BAM). Supported by the National Research Council of Canada Industrial Research Assistance Programme (NRC IRAP) and Germany’s Federal Ministry for Economic Affairs a..

Infrastructure Urban

05 Nov 2025

Antony Waste Q2 Revenue Jumps 16%; Subsidiary Wins Rs 3,200 Cr WtE Projects

Antony Waste Handling Cell Limited (AWHCL), a leading player in India’s municipal solid waste management sector, announced a 16 per cent year-on-year increase in total operating revenue to Rs 2.33 billion for Q2 FY26. The growth was driven by higher waste volumes, escalated contracts, and strong operational execution.EBITDA rose 18 per cent to Rs 570 million, with margins steady at 21.6 per cent, while profit after tax stood at Rs 173 million, up 13 per cent YoY. Revenue from Municipal Solid Waste Collection and Transportation (MSW C&T) reached Rs 1.605 billion, and MSW Processing re..