Domestic airfares soar 29% quarter-on-quarter

Overall fares rise 9% in the same period

Mumbai, Sept. 18:  

Airfares in India, across domestic and international travel, saw an overall rise of nine per cent quarter-on-quarter, with domestic fares witnessing a considerable increase of 29 per cent.

Fares from India to the EMEA (Europe, the Middle East and Africa) region as well as Intra-Asia Pacific fares saw a five per cent increase, according to the latest American Express Business Travel Monitor, while fares to the Americas overall saw a marginal increase of two per cent.

The Monitor tracks a constant set of round trip airfares, all originating in the Asia Pacific region with destinations throughout the world. More than 370 city pairs are included.

Sandeep Shastri, Vice-President and General Manager, Global Business Travel, American Express India, said, “The increase in travel demands, steady increase in inflation, reduction in capacity and flight network disruptions leading to reduced supply in the market are some of the contributing factors for the increase in airfares. The environment will continue to remain dynamic. To stabilise expenses on business travel, companies should look at cost-effective travel programmes and execute multi-year contracts with key domestic and international carriers.”

In the last quarter, India saw a five per cent rise in airfares for both Intra-Asia Pacific and EMEA destinations, with a significant increase in business class airfare for intra-Asia Pacific travel by 13 per cent in full fare and nine per cent in discounted fare quarter-on-quarter.

Airfares from India to the US have seen a marginal increase of two per cent. Travel to this region remained flat in full business airfare as well as in full economy segments with no increase in fares.

Meanwhile, the Asia-Pacific region witnessed an overall increase of three per cent in the airfares across all categories. Domestic airfares saw a five per cent price increase in the second quarter of 2012 as compared with other tracked fares in the Asia-Pacific region, according to the report.

India and Australia in particular have seen significant increases in domestic fares which have had an impact on the overall fare performance for the region, said Carl Jones, Head of American Express Advisory Services for the Asia-Pacific region.

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