Domestic Air fares set for increase!

Comes the new year and you could have to pay more for flying. Buoyed by the recent spurge in the number of air passengers and air traffic load, the domestic airlines such as Air India, Kingfisher and Jet Airways have decided to hike air fares by 25% from January!

Some airlines have already done the hike for some select routes. State-owned national carrier Air India said 90% of the seats in most routes were already booked and the remaining would be sold at a higher price bracket. The fare hike is seen linked to improving macro factors as passenger traffic has heightened since the past month.

Moreover, with airlines wanting to cash in on the peak season and on the New Year holiday rush, the increase in passenger load for most airlines has been an average 30%. The industry-wide load factor for this quarter is about 75% and in some sectors it has touched 90%.

Airlines have been eager to raise fares as they have been reeling under huge losses after indulging in aggressive price cuts in the past to attract passengers. So get ready to shed more for flying!

2 Comments

Muruganandham k December 30, 2009

Again, air transport is going away from the Middle class people.
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Manoj Govindassamy December 31, 2009

We need Deccan Airways again.
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