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3 years ago .New Delhi, Delhi, India

Rising airfares in a post-COVID India: Why?

  • Delta Air Lines Inc. Chief Executive Officer Ed Bastian says that the cost of airfares is over 30% of their pre-pandemic fare
  • Bastian said that this affected all categories of flights, including business and international flights
  • Travellers have also been more than willing to spend extravagantly on flight tickets after the pandemic

Written by:Haseena
Published: June 09, 2022 06:56:29 New Delhi, Delhi, India

Skyrocketing air fares are hurting travellers venturing out after the lifting of COVID-19 restrictions. According to Delta Air Lines Chief Executive Officer Ed Bastian, the cost of airline tickets may now be 30% higher than pre-pandemic levels.

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Bastian also said these changes have affected all categories of travel, including business and international. 

“It’s coming with leisure, it’s coming with premium customers, it’s coming with business, it’s coming with international. It doesn’t matter what the category is,” he said. 

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In India, aviation turbine fuel (ATF) prices were hiked by 5.3% on May 16, the latest in a series of increases. The Russia-Ukraine war has influenced ATF prices, but taxes in various states also keep jet fuel prices high.  

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Comprising 30-40% of airlines’ operating costs, ATF prices have a major influence on fares. Other factors include lack of airline staff due to the previously imposed travel bans, and airlines’ reluctance in bringing back flights. Travellers have also been more than willing to spend extravagantly after the pandemic, enabling airlines to charge current rates. 

United Airlines CEO Scott Kirby stated: “If you’re worried about pricing destroying demand, you are betting against history,”

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