Travelers planning to fly home for the Diwali festivities are facing significantly higher costs, as domestic flight fares on several key routes have soared ahead of the festival weekend. A check of airline prices for November 6-8 reveals substantial premiums, with return fares on popular corridors reaching unprecedented levels.
Soaring Prices on Major Routes
For instance, a return journey between Delhi and Hyderabad on Air India is currently priced around ₹18,000. Similarly, the Delhi-Mumbai route on IndiGo shows return fares of approximately ₹13,000. Other major employment-to-hometown corridors are also experiencing elevated prices, with Delhi-Bengaluru tickets around ₹16,000, Delhi-Kolkata at ₹17,000, and Delhi-Ahmedabad also at ₹17,000, primarily on Air India.
This surge in Diwali flight fares is largely attributable to the typical sharp rise in festive travel demand. Passengers often aim to travel within a narrow window to celebrate Diwali with their families. As lower-priced seats are quickly booked, airlines' dynamic pricing systems automatically shift travelers into higher fare categories.
Capacity Constraints Exacerbate Fare Hikes
Compounding the demand-driven price increases is a tighter capacity backdrop in the Indian domestic aviation market. According to aviation data provider OAG, India's domestic scheduled capacity for September is down 5.6% year-on-year, totaling 15 million seats. Major carriers have also seen capacity reductions: IndiGo's capacity fell by 4.5% to 11.26 million seats, while Air India's dropped by 8.8% to 3.22 million seats.
These capacity reductions are occurring amidst higher operating costs and ongoing aircraft availability constraints. Such limitations reduce the cushion available to airlines during periods of peak demand, further contributing to elevated prices.
Government Stance and Market Concentration
The government has previously stated that airfares operate on dynamic pricing principles, driven by demand and supply. Fares are influenced by factors such as the number of available seats, booking time, and overall market conditions. The issue is particularly significant given the high concentration within India's aviation market, where IndiGo and Air India collectively account for over 90% of domestic traffic.
This market dominance means that capacity decisions made by these two largest carriers have a profound impact on seat availability, especially during peak travel periods like Diwali. The decision by IndiGo and Air India to cut domestic capacity in response to higher fuel costs has inevitably tightened seat availability, contributing to the persistent high Diwali flight fares.
With Diwali falling on November 8, travelers looking to fly home for the festival weekend should be prepared for a substantial airfare bill, particularly on popular routes connecting major cities to hometowns.