Average air ticket prices rose by 9% in Jan-March period

29 May 2024 CW Team

Average flight ticket costs in India climbed 9% in the first quarter of 2024, mostly on account of an overall increase in travel demand and much stronger economic development, according to Australian Securities Exchange-listed FCM Travel. Conglomerates and industries, including manufacturing and IT, drove a 20% increase in premium class reservations between January and March of this year compared to the same period last year, according to FCM Travel.

Sunny Sodhi, Managing Director of FCM Travel India, mentioned that domestic air capacity has increased by over 3%. However, despite this increase, average ticket prices have risen by 9% due to heightened demand for travel, which is attributed to stronger economic growth and a general surge in travel demand. He added that popular domestic routes for business travel include Delhi to Mumbai, Mumbai to Delhi, and Bengaluru to Mumbai. Sodhi observed that India is on track to become the 7th largest business travel market globally, and the country's aviation sector is bolstering the growth in business travel. He noted that business travellers are now more inclined to spend a bit more for a premium travel experience. Regarding international air travel, Sodhi remarked that international air capacity has also surged by 14%, owing to the burgeoning aviation sector in India. Additionally, he mentioned that average international airfares have decreased by 15%, aligning with the global trend of declining yields across airfares.

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